Welding Contractor Insurance

Every welding contractor needs the right kind of business insurance to protect against risks faced on the job.

Christine Lacagnina Written by Christine Lacagnina
Christine Lacagnina
Written by Christine Lacagnina

Christine Lacagnina has written thousands of insurance-based articles for TrustedChoice.com by authoring consumable, understandable content.

Young welder working in his workshop. Find Welding Contractor Insurance.

Whether working on new building construction, automotive repair, shipbuilding, or any of hundreds of other industries that rely on welders, if you own a welding contracting firm, you need the right protection for your business assets. Having a solid welding insurance policy can get the job done. Without this coverage, your business is vulnerable to potentially huge financial losses from everyday common risks as well as completely unexpected disasters.

An independent insurance agent can help you get set up with the right kind of insurance for welders. They'll get you matched to the policy you need. But first, here's more about welding insurance.

Quick Welding Industry Stats

Knowing a bit more about the welding industry can help create a better picture of the need for coverage for each business. Here are just a handful of fast welding industry stats:

  • This year, there are 592,000 welders working in the US.
  • Welding is known to be one of the highest-paying industries globally.
  • In one recent year, the global welding market was valued at $20.23 billion.
  • The global welding market size is expected to grow to $28.66 billion in the next five years. 

With a better image of the overall welding industry in mind, it's time to ensure your welding business is set up with the right insurance. Having coverage can help your welding business increase its chances of continuing smooth operations for many years to come.


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Why Welders Insurance Must Include Liability Coverage

A lawsuit can be overwhelmingly expensive. The right liability insurance provides coverage for legal defense fees, court costs, and financial damages. Owners of welding businesses must protect their company assets with the right kinds of liability insurance for welders. Look into the following common types of liability coverage:

  • Commercial general liability insurance: Because of how easy it is to start fires while working, welders risk damaging others' property and injuring others while working. Commercial general liability insurance provides coverage for this and other hazards in which a welder may cause damage or injury to third parties.
  • Commercial auto liability insurance: As a welding contractor, you likely have at least one business-owned truck or van used to transport tools and equipment between job sites. These vehicles must be protected against damage, theft, and lawsuits with the right commercial auto insurance. However, if your employees use their personal vehicles for job tasks, you'll need hired or non-owned auto insurance to protect against incidents your business could be held liable for.
  • Commercial umbrella insurance: Some lawsuits can exhaust the liability coverage limits of an existing policy. But having business umbrella insurance can increase your liability coverage in increments of $1 million to offer you much greater protection.

An independent insurance agent will help your welding business get set up with all the kinds of liability coverage it needs.

Welding Businesses Must Protect Their Teams with Workers' Compensation Coverage 

Welders often work outdoors in inclement weather, indoors in confined areas, or on scaffolding at dangerous heights. All of these conditions increase the risk of worker injury. 

Additionally, welders often suffer musculoskeletal injuries from lifting heavy objects or from working in awkward positions. That's why welding business insurance must include workers' compensation coverage.

This insurance provides coverage for medical treatment for workplace injuries, lost wages while injured workers recuperate, and even death benefits to survivors in the tragic event that a workplace injury is fatal. Coverage is mandatory for most businesses with employees in nearly all states. Having workers' comp also exempts your business from lawsuits filed by employees and their families in case of a workplace incident.

Welders Insurance Must Also Include Commercial Property Coverage

Welding equipment is expensive, so having the right coverage to protect your investment is critical. There are a few different kinds of commercial property coverage that you may want to consider for your welding business, like:

  • Business property insurance: This provides coverage for your business's property, including buildings, furnishings, and welding equipment, from loss, damage, or destruction due to incidents like fires, theft, and vandalism.
  • Equipment breakdown insurance: This insurance covers the cost of repairing or replacing business equipment and the cost of renting equipment to use while repairs are being made.
  • Builders risk insurance: This covers business equipment and materials on job sites if you're working on a new construction project. 
  • Inland marine insurance: This provides coverage for tools and equipment while in transit to and from the job site.
  • Employee dishonesty insurance: This insurance provides you with compensation in the unfortunate event that an employee steals equipment or cash from your business.

An independent insurance agent can help you build a comprehensive welders business insurance policy that includes every type of coverage necessary to fully protect your company.

How Much Does Welding Insurance Cost?

The cost of welding insurance varies depending on a number of different factors. These often include:

  • Your business's location
  • The number of employees it has
  • The amount of coverage and limits your business requires
  • Your business's annual revenue
  • Your business's claims history

An independent insurance agent, however, can pull exact quotes from multiple welding insurance companies in your area.


Save on Business Insurance

Our independent agents shop around to find you the best coverage.

Independent Agents Make Buying Insurance for Welders Easy

When shopping for welding contractor insurance, get the support you need by working with an independent insurance agent. Independent insurance agents can shop and compare welders insurance policies from multiple different carriers for you, ultimately finding the policy that offers the best blend of coverage and cost. And down the road, they'll still be there for you to help file claims or update your coverage.

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