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What insurance should a welding contractor have in Ontario?

Welding can be a dangerous job and welding contractors are held to high standards of quality and professionalism. Many industries such as new home construction, shipbuilding, pipe installation, and automobile manufacturing require the services of welding contractors. These are demanding fields to work in and it is part of a welding contractor's job to protect their clients, employees, and business from financial losses.

Welding contractors need to purchase insurance to cover the risks specific to their businesses so they can protect themselves from liability claims and other losses. Our experts at Western Financial Group can easily help you with the right policy.

What liability insurance do Ontario welding contractors need?

Welders need to make sure they have enough coverage for a wide range of risks. Having enough liability insurance is essential for welding contractors.

Commercial general liability insurance

As with all construction contractors in Ontario, welders are required to have general liability insurance. The nature of the job means welding contractors face numerous risks day in and day out, including injury to third parties and damage to property resulting from work accidents. Commercial general liability insurance covers expenses associated with liability claims for bodily injury and property damage, which can be extremely high and can bankrupt businesses that aren’t properly covered. Liability insurance pays for legal expenses if someone files a claim against you, covers the costs of replacing damaged property, and pays for medical expenses for victims of accidents.

Commercial auto liability insurance

Much like your personal car insurance, this type of liability coverage is for accidents that cause property damage or injury to others. Commercial auto insurance can be customized for your business and you can insure one vehicle or a whole fleet.

Umbrella liability insurance

Some welding contractors prefer to have liability coverage over and above what is covered by their other liability insurance policies. Umbrella liability insurance fills the gaps left by commercial general liability and commercial auto liability insurance and has higher limits. Having more liability coverage than you think you need is important. If there is an accident that it more expensive than the limit on your policy, you will be left paying the difference.

Workers' compensation

Welding contractors in Canada are required to have workers’ compensation coverage. Welding is a dangerous profession and workers’ compensation covers medical bills, lost wages, and death benefits. Workers’ compensation is obtained through the Workplace Safety and Insurance Board and welding contractors must pay into it. It can be supplemented with coverage from your insurance provider and your broker can help you figure out how much coverage you need.

Which other types of insurance do welding contractors need in Ontario?

In addition to liability insurance, there are several other types of coverage you should consider for your welding business.

Equipment breakdown insurance

It is important to protect your welding equipment to prevent financial losses if it breaks down. Equipment breakdown insurance covers the cost of repairing or replacing equipment and covers rental fees so your company can continue working while your equipment is being replaced or repaired.

Tools and equipment insurance

While equipment breakdown insurance covers equipment that malfunctions, tools and equipment insurance covers other types of damage and theft. It covers the cost of repairing and replacing tools and equipment, as well as the cost of rentals while damaged or lost equipment is being replaced.

Business property insurance

Business property insurance covers the cost of replacing or repairing damaged property owned by your business, such as oxygen tanks and welders. It also covers office equipment like computers, electronics, and furniture. Business property policies cover damage from theft, vandalism, fire, natural disasters, and other risks.

Inland marine insurance

Because tools and equipment must be transported between job sites, it is important to make sure they are covered during transport. Inland marine insurance provides compensation for equipment and tools that are damaged in an accident while they are being moved from place to place.