Frequently Asked Questions About
Commercial General Liability Insurance
How much does commercial insurance cost?
Costs can vary widely based on industry and are also determined by zip code and often payroll and/or gross sales. Request a free quote to get an exact number.
What kind of business insurance do I need?
Most business owners need General Liability Insurance at the very least. If you have any non-owner employees, you will need workers compensation insurance too.
What is a Certificate of Insurance?
A Certificate of Insurance is proof of coverage. It lists the type and amount of liability coverage you have and other policy information when a third party requests it.
Is business insurance tax deductible?
Yes. you can deduct the cost of commercial insurance premiums. The IRS considers insurance a cost of doing business as long it benefits the business & serves a business purpose.
Welding Contractor Insurance
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.
Liability Insurance: The Most Important Part Of Your Welder Insurance Plan
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 abd 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.
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.
Small Business Economic Data & Insurance Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. Maybe you want to contribute to the economic growth of your community. Whatever the reason is, if you're thinking about starting a small business, it's important to understand pertinent information relating to small businesses in the United States; namely economic information and insurance regulations. After all, if you want your small business to succeed, you have to understand the economic trends organizations of a similar size in your area.
Likewise, you want to ensure that your small business is well protected with the right business insurance and that you are in compliance with the rules and regulations that pertain to commercial insurance in your region.
Read up on economic statistics and insurance information that relates to small business owners in the United States.
Small Business Economic Data In The United States
Here's a look at some information that was compiled by the Small Business Association (SBA) regarding the economic data that pertains to small businesses in the United States:
- In 2015, small businesses in the United States employed an estimated 58.9 million American workers, or 47.5 percent of the nation's private workforce.
- Largest shares = fewer than 100 employees. The small businesses that employed 100 people or less had the largest share of employment amount small businesses.
- Employment increased by nearly 2 percent. In 2018, employment amongst small businesses increased by 1.8 percent, which is an increase of 1 percent from the prior year.
- Increase in proprietors. In 2016, the number of small business proprietors increased by 2.3 percent.
- In 2015, small businesses were responsible for creating 1.9 million net jobs. Organizations that employed 20 people or less had the largest gains, as they added an estimated 1.1 million net jobs.
- There were 5.7 million loans that were value less than $100,000 issued by lenders in the United States in 2016. These loans were issued under the Community Reinvestment Act.
- Small business owners that were self-employed at the incorporated businesses that they owned reported a median income of $50,347 in 2016.
- Small business owners that were self-employed at the unincorporated businesses that they owned reported a median income of $23,060 in 2016.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage. The SBA recommends the following insurance plans for small business owners:
- Commercial Property Insurance: In the case of an unplanned disaster - fire, flood, vandalism, theft, etc. - this type of coverage will help you avoid paying for the damage out of your own pocket. Even if you rent the property, you should still carry commercial property insurance.
- Commercial Liability Insurance: In the event that a legal situation arises - a negligence lawsuit, for example - commercial liability coverage will provide financial protection. It will cover the cost of legal defense fees, court fees, and even moneys that may be awarded.
- Commercial Auto Insurance: If you operate a vehicle for any activities that are related to your business - transporting and/or delivering goods, or meeting with clients - commercial auto insurance is legally required for businesses of all sizes, including small businesses.
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.
- Air Conditioning Systems Installation Repair
- Builders Risk
- Cable And Satellite TV Installer
- Chimney Sweep
- Contractor Liability
- Door And Window Installers
- Dryer Vent Cleaning
- Drywall Contractor
- Electrical Contractors
- Environmental Remediation Contractors
- Fence Installation
- Fire Sprinkler Contractors
- Fire & Water Restoration Contractors
- Flooring Contractor
- Garage Door Installer And Repair
- Glass Contractor
- Glazier Insurance
- House Cleaning
- HVAC Contractor
- Insulation Contractor
- Janitorial Cleaning Services
- Lawn Care
- Paperhanging Contractors
- Plastering And Stucco Contractor
- Pressure Washing Contractors
- Propane And Fuel Dealers
- Rug, Upholstery & Carpet Cleaning
- Sandblasting Contractors
- Security Alarm
- Siding Contractor
- Solar Panel Installers
- Snow Plow
- Stone And Tile Installer
- Swimming Pool Contractor
- Tree Surgeon
- Tree Trimming
- Upholstery Shop
- Waste Haulers & Garbage Collection
- Water Well Drilling
- Welding Contractor
- Wildlife & Pest Control
- Window Cleaning
A contractor that wants to begin or stay in business, liability coverage must be obtained for the premises or operations, off-site locations and products/completed operations exposures. These coverages may be included as a part of a businessowners policy (BOP) or purchased in a commercial general liability (CGL) policy. Owners and contractors protective liability and railroad protective liability coverages may also be required in certain cases in order for a contractor to obtain a particular job.
Physical damage coverage for tools, supplies and equipment, both on and off the contractor's premises, is a concern. Liability exposures at the premises of the contractor, and at the premises of the contractor's customer, must be properly addressed along with completed operations. Business insurance is very important as is workers compensation insurance protection for employees.
Contractors may work under a general contractor as a subcontractor in larger construction projects - like a new commercial site or residential subdivision. They can work on smaller projects directly with a home owner, usually specializing in renovations or remodels.
In business insurance speak, often called 'artisan contractors' or 'casual contractors', they are involved in many aspects of construction and contracting work – and include various trades and skills. Carpenters, painters, plumbers, electricians, roofers, tree trimmers, landscaping are just a few examples. They may do roofing, fencing, drywall, tile work and many other trades that involve skilled work with tools at the customer's premises.
An artisan contractor performs a single trade or job, and each has its own specialized liability needs with its own exposures to risk and accidents. Contractors liability insurance can offer coverage for bodily injury, property damage, advertising injury and medical payments.
Most artisan contractors should have commercial general liability at the very least, but many need broader coverages - like an umbrella to increase their limits of liability, inland marine policy to protect their tools, workers compensation if they have employees, and even commercial auto if they use vehicles for business purposes.
Quotes from leading small business insurance carriers including: ACE, AmTrust, Chubb, Cincinnati, CNA, Colony, Employers, Evanston, Fireman's, Foremost, Guard, Hanover, Hiscox, Liberty Mutual, LLoyd's of London, Markel, MSA, Nationwide, Penn America, Philadelphia, Prime, Progressive, Scottsdale, The Hartford, Travelers, USLI, Utica First, Western World, Zurich & others.