Welding Contractor Insurance Policy Information
Welding Contractor Insurance. Welding contractors join two pieces of metal together by melting parts of the pieces and adding a filler material that cools to unite them into one jointed piece. The five different welding processes are arc welding, gas welding, resistance welding, energy beam welding and solid-state welding.
The one most frequently used by welding contractors is gas welding. The others are typically used in industry for high-speed, precision welding done by employee welders. Welding can be done at the welder's shop premises, where customers bring the property to be welded, or at off-site locations.
As with any industry, there are risks involved, especially if you own a welding firm. To keep your workers and your business protected it's best to have the right insurance policies in place. Get the welding contractor insurance coverage that will keep you and your business protected.
Welding contractor insurance protects you and your truck from lawsuits with rates as low as $97/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked welders insurance questions:
- What Is Welding Contractor Insurance?
- How Much Does Welding Contractor Insurance Cost?
- Why Do Welders Need Insurance?
- What Type Of Insurance Do Welders Need?
- What Does Welding Contractor Insurance Cover & Pay For?
What Is Welding Contractor Insurance?
Welding contractor insurance is a type of insurance coverage designed specifically for businesses and individuals who provide welding services. This insurance helps protect the welding contractor and their clients from financial losses due to accidents, injuries, property damage, or other unexpected events.
The insurance may include coverage for general liability, property damage, workers' compensation, and other specialized forms of insurance. The policy will typically outline the specific risks that are covered and the level of protection offered.
Welding contractor insurance is important for protecting the business and its clients from potential financial losses and ensuring that the welding contractor is able to operate effectively and safely.
How Much Does Welding Contractor Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small welding businesses ranges from $97 to $129 per month based on location, size, payroll, sales and experience.
Why Do Welders Need Insurance?
As a welder, you are exposed to various risks and dangers such as fire, explosions, toxic fumes, electrical hazards, cuts, burns, and more. Welding also requires the use of heavy machinery and equipment, which can cause property damage and liability claims.
Additionally, as a business owner, you may be held responsible for injuries sustained by employees, clients or third-party individuals, and be held liable for the financial consequences.
Insurance can help protect you from the financial impact of these risks. By purchasing insurance coverage, you can reduce your exposure to financial losses in the event of an accident, liability claim or damage to property. This allows you to focus on your work and keep your business running without the worry of potential financial ruin.
Some types of insurance commonly purchased by welders include general liability insurance, workers' compensation insurance, commercial property insurance, and business interruption insurance.
What Type Of Insurance Do Welders Need?
A lawsuit against your company can turn out to be expensive. Having liability insurance gives you coverage for legal defense fees, court fees, and any financial damages. If you don't have this type of insurance, you put your business in a position to lose everything. Protecting your business assets by having welding contractor insurance is important.
When you go to speak with an independent insurance agent, you will discuss different coverages to find the right one for your business. Here are some of the different policies you are likely to speak about:
Commercial Auto Liability Insurance: With a welding business, you might own vehicles that you use for transportation of equipment and tools. By having vehicles in your business, it is important that you have the right insurance for them. If the employee gets in an accident while on job time and they are using their vehicle your welding business could be held liable. Getting hired or non-owned vehicle insurance is the way to protect against this.
Commercial General Liability Insurance: Welding involves the use of fire and heat to mold the metal the way the job requires. This fact means you're more at risk of fires which can cause damage to property or others while working. By having general liability insurance, you have coverage for these types of accidents.
Umbrella Insurance Coverage: Any insurance plan you get will come with limits. If after you ever feel like the limit is too low you on your insurance you can always purchase additional liability coverage. Getting umbrella insurance is the way you'd go about doing this.
Workers' Compensation : Working as a welder means you are at risk of being injured. As a welder, you may be working outside or on scaffolding. Wherever it is protection is important. With all of these risks, there's a higher chance of injury. This simple fact means you must keep your business protected with the right welding contractor insurance.
Workers' compensation is an important part of your insurance portfolio. In many states, it's a requirement for any non-owner employees and before you begin working on any project. Even if you're in a state where it's not required, you may still need to show proof that you have it to the person hiring you for the job.
What workers' compensation does is if a worker is injured while on the job and needs medical treatment this insurance helps with the different costs associated. It also covers lost wages and pays death benefits to the surviving family if a fatal accident happens on the job.
Other Welder Insurance Policies That Cover Your Business
Business personal property insurance: Covers your business property such as the tools and equipment used in the running of your welding business.
Breakdown insurance: This insurance covers costs if your equipment needs repairing or if it needs replacing. It also includes the cost of renting equipment while your main equipment is in the process of being fixed.
Builders risk insurance: If you're working as a subcontractor, this type of insurance is purchased by the top contractor on the job.
Inland marine insurance: covers your tools and equipment when they are on the job site or when they are transported to and from the site.
Welding Contractor's Risks & Exposures
Premises liability exposures may be limited at the welder's office if there are no on-premises operations due to lack of public access. If customers bring items to be welded to the premises, they should not be permitted in work areas due to the potential for injury from trips and falls, heat and sparks from welding operations, and eye injuries.
Off-premises exposures can be high due to the chance of bodily injury to employees of other contractors and property damage caused by the sparks produced by the welding process. Welding areas should have an established, maintained and monitored clear safety perimeter during operations.
Completed operations liability exposures vary depending on the type of property welded and the injury or damage that might occur if the weld breaks. Reviewing past jobs will provide an indication of the types of jobs that can be anticipated in the future.
Workers compensation exposures can be severe. As the primary cause of loss is burns, protective gear and clothing, such as face shields, gloves and aprons, are essential. Eye protection is particularly important due to the potential for injury from exposure to UV radiation and infrared light.
Lifting can result in hernias, strains, sprains and back injuries. Welding should be conducted in well-ventilated areas to reduce the exposure to injury from fire, fumes and vapors. Workers can experience lung, eye or skin irritations and reactions because of exposure to gases used in welding operations. When work is done on ladders and scaffolds, employees can be injured from falling, being struck by falling objects, or adverse weather conditions.
The absence of good maintenance of scaffolds, proper use of basic safety equipment, and strict enforcement of safety practices may indicate a morale hazard.
Property exposures are from the sparks and flames produced by the welding process and storage of gas cylinders on the premises. If all welding is done off-site, the exposure is lower but the potential for fire or explosion is still present because of the stored gas cylinders. Since most of the property at the welding contractor's premises is metal, the susceptibility to damage is low.
Welding involves the use of tanks of gases that must be stored and handled properly to avoid loss. There should be basic controls such as chained storage in a cool area and the separation of welding operations either in a separate room or with flash/welding curtains away from flammables.
Crime exposure is primarily from employee dishonesty. Background checks, including criminal history, should be performed on all employees providing services to customers or handling money. All ordering, billing and disbursement should be handled as separate duties with reconciliations occurring regularly. If metals being welded have high resale value, there could be theft by outsiders.
Inland marine exposures include accounts receivable if the welder offers credit to customers, computers, contractors' equipment, goods in transit, and valuable papers and records for customers' and suppliers' information. Contractors' equipment includes the weld gun, gas tanks and the protective equipment used by the welder. The goods in transit exposure includes supplies and customers' property.
There will be a bailee's exposure if customers' property is left on the welding contractor's premises.
Business auto exposures are generally limited to trips to and from job sites or picking up and delivering projects to customers. MVRs must be run on a regular basis. Random drug and alcohol testing should be conducted. Vehicles must be well maintained with records kept in a central location.
What Does Welding Contractor Insurance Cover & Pay For?
Welders may face lawsuits for various reasons, including accidents that cause property damage or personal injury to others, breach of contract or negligence claims, and even product liability claims. Insurance can help protect welders from the financial consequences of such lawsuits, as well as legal defense costs. Here are some examples:
Accidents that cause property damage or personal injury: Suppose a welder accidentally causes a fire that damages a client's property or injures someone on the job site. The affected party may sue the welder for damages. If the welder has liability insurance, the insurer will cover the costs of the lawsuit, including damages awarded to the plaintiff, up to the policy limit. For example, if the policy limit is $1 million, and the court awards the plaintiff $1,0000,000 in damages, the insurer will pay that amount (assuming no deductible applies).
Breach of contract or negligence claims: Suppose a welder agrees to perform a welding job for a client but fails to deliver the expected results or causes damage due to negligence. The client may sue the welder for breach of contract or negligence. If the welder has professional liability insurance (also known as errors and omissions insurance), the insurer will cover the legal defense costs and damages awarded to the plaintiff, up to the policy limit.
Product liability claims: Suppose a welder manufactures or sells a welding product that is defective or causes harm to users. The injured party may sue the welder for product liability. If the welder has product liability insurance, the insurer will cover the legal defense costs and damages awarded to the plaintiff, up to the policy limit.
In all of these cases, insurance can provide significant financial protection for the welder, who might otherwise face ruinous legal fees and judgments. However, it's important to note that insurance policies have limits and exclusions, and the welder should carefully review the terms of the policy to understand what is covered and what is not.
Commercial Insurance And Business Industry Classification
- SIC CODE: 7692 Welding Repair, 1799: Special Trade Contractors, Not Elsewhere Classified
- NAICS CODE: 238190 Other Foundation, Structure, and Building Exterior Contractors, 811310 Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance, 811411 Home and Garden Equipment Repair and Maintenance
- Suggested Workers Compensation Code(s): 3365 Welding or Cutting NOC & Drivers
7692: Welding Repair
Division I: Services | Major Group 76: Miscellaneous Repair Services | Industry Group 769: Miscellaneous Repair Shops And Related Services
7692 Welding Repair: Establishments primarily engaged in general repair work by welding, including automotive welding. Establishments primarily engaged in welding at construction sites are classified in Construction, Industry 1799.
- Brazing (welding)
- Repair of cracked castings (welding service)
- Welding shops, including automotive
Welding Insurance - The Bottom Line
Owning a welding firm means you must take the necessary steps to ensure that your business is secure. The first for you to do this is to make sure that you have the right insurance policies for your business. Having the right insurance can save you lots of money if something ever goes wrong in your business or if you are sued for any work you may be doing.
Additional Resources For Contractors & Home Improvement Insurance
Learn about small business contractor's insurance, including what it covers, how much it costs - and how commercial insurance can help protect your contracting business from lawsuits.
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The contracting industry is a field that involves a lot of risks, both for the contractor and for the clients they work for. This is why commercial insurance is so important for contractors. Insurance can protect contractors from a variety of potential losses, such as:
Liability: If a contractor causes damage to a client's property or if a client is injured while on a job site, the contractor could be held legally responsible. Liability insurance can cover legal fees and any settlements or judgments that may be awarded.
Property damage: Contractors often use a lot of expensive equipment and tools, and there is always a risk that this equipment could be damaged or stolen. Commercial property insurance can help cover the cost of replacing damaged or stolen equipment.
Business interruption: If a contractor is unable to work due to an unforeseen event, such as a natural disaster, insurance can help cover their lost income during this time.
Workers compensation: If a contractor or one of their employees is injured on the job, worker's comp can help cover medical expenses and lost wages.
Overall, commercial insurance is an important risk management tool for contractors. It can provide financial protection against a wide range of potential losses, helping contractors to stay in business and continue serving their clients.
Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Contractors' Equipment and Tools, General Liability, Employee Benefits Liability, Umbrella Liability, Automobile Liability and Physical Damage, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Accounts Receivable, Builders Risk, Computers, Goods in Transit, Installation Floater, Valuable Papers and Records, Cyber Liability, Employment-related Practicesand Stop Gap Liability.