What Insurance Do I Need for Welding?
Welders need different types of insurance to protect themselves, their business, and their clients. Welding insurance protects you against lawsuit claims for accidents causing third-party property damage or third-party bodily injury.
Here are the key types of insurance welders should consider:
1 General liability insurance: Covers third-party bodily injury, property damage, and legal defense costs against claims that may arise from welding activities.
What else does general liability insurance help cover?
- Medical bills if someone is injured
- Legal costs and settlement costs of liability lawsuits filed against you
- Liability lawsuits related to slander and libel
It’s recommended that welders have $5 million in CGL coverage.
2 Commercial property insurance: Protects the physical assets of a welder's business, such as tools, equipment, and workspace, against risks like fire, theft, and vandalism.
If you are a mobile welder, Western Financial Group and CLAC have partnered together to bring CLAC Mobile Welding Contractors an exclusive Commercial General Liability Insurance program. Western has a dedicated team of insurance experts to advise and meet the needs of CLAC members.
3 Professional liability insurance: Also known as Errors and Omissions (E&O) insurance, it protects against claims of negligence or mistakes in the services provided.
4 Commercial auto insurance: Covers vehicles used for business purposes, including transporting welding equipment and materials.
5 Mobile property insurance: If you regularly move equipment to different work locations as part of your Regina deck and fence business, mobile property insurance provides coverage for property that you don't store at a fixed location, or for equipment routinely taken off site.
6 Product liability insurance: Protects against claims arising from the products or materials used in welding that may cause harm or injury after the work is completed.
7 Umbrella insurance: Provides additional liability coverage beyond the limits of existing policies, offering extra protection against significant claims or lawsuits.
8 Business interruption insurance: This coverage supports you when your welding business can’t operate due to a covered loss.
There are a number of losses that can force your welding business to shut down. Some examples include:
- Damage to your equipment from fire or vandalism
- A major reduction in revenue due to a client/supplier facing losses of their own
- A disruption in your supply chain
Business interruption insurance can help with expenses such as:
- Payroll
- Rent
- Utilities
- Property taxes
- Alarm monitoring
- Relocation of your business
9 Tools and equipment insurance: It can provide reimbursement to repair or replace tools if they are lost, damaged, or stolen. Insured events apply to tools and equipment that are vandalized, stolen, lost, or damaged by fire or flood.
Any item valued at less than $1,500 is considered a tool. Anything valued above $1,500 is considered equipment.
10 Pollution liability insurance: Pollution liability insurance helps cover costs to clean up pollution caused by your welding work. It can help pay for clean-up costs, civil fines, and emergency response expenses.
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