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9 Best General Liability Insurance for Welding Businesses

Do you want to know how much it cost to insure a welding business? If YES, here are 9 best general liability insurance policies for welding businesses. A welding business repairs, restores, and builds metal-based items. A welding business can also make money by making metal modifications and repairs.

If a company’s machinery breaks, a welding business will be called to analyse the surrounding problems. This is a solid business for workers who enjoy excavating projects, fixing mechanical items, and performing general maintenance.

In this business, an owner also needs to conduct research on local market needs, effective sales strategies, management, and finance. Just like any industry, there are also risks involved, especially if you own a welding business. 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.

Note that a lawsuit against your company can turn out to be expensive. Having liability insurance offers 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 very necessary in this age.

9 Best General Liability Insurance Policies for a Welding Business

As a welding business owner, when you go to speak with an independent insurance agent, you will discuss different coverages to find the right one for your business. Note that the main cost of your insurance is the combined annual premium of your various insurance types.

Premiums for welding businesses can start as low as $350, but some exceed $10,000. The amount usually depends on coverage amounts, annual revenue, types of jobs, and other factors. Some policies also require out – of – pocket deductibles, which add to your overall cost. Below are some of the policies you are likely to speak about:

1. Commercial Auto Liability Insurance

  • Annual Premium Cost: $1,000 –  $3,000
  • Deductible: Varies

In a welding business, you might have vehicles you use for transportation of equipment and tools. If you vehicles, it is pertinent you have the right insurance for them. If any of your employees gets in an accident while on the job 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.

2. Commercial General Liability Insurance

  • Annual Premium Cost: $350 –  $2,500
  • Deductible: $0 –  $1,000

Have it in mind that welding involves the use of fire and heat. It simply means you’re more at risk of fires which can cause damage to property or others while working. But with general liability insurance, you have coverage for these types of accidents.

3. Umbrella insurance coverage

Note that insurance companies have limits to how much liability coverage they are willing to offer. If you feel that your coverage limits are too low, you should consider acquiring additional liability coverage for all of your liability policies by purchasing an umbrella insurance policy. These policies provide an affordable way to obtain very high liability coverage limits.

4. Workers’ Compensation Insurance

  • Annual Premium Cost: $1,500 –  $7,500
  • Deductible: N/A

There are numerous ways welders can be injured on the job. Welders often work outdoors in inclement weather, indoors in confined areas and on scaffolds at dangerous heights. All these conditions increase the risk of worker injury. In addition, welders often suffer musculoskeletal injuries from lifting heavy objects or from working in awkward positions.

When you are building your welding contractor insurance portfolio, you can include workers’ compensation insurance, which is required of employers in most states. This insurance offers 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 proves fatal.

5. Business personal property insurance

This insurance provides coverage for your business property, including computer systems, furnishings and welding equipment, at your central business location. Covered events include extreme weather events, fire, theft and vandalism. It more or less covers the tools and equipment used in the running of your welding business.

6. Breakdown insurance

Welding equipment is expensive. If it breaks down, you will be unable to do your job. Nonetheless, 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.

7. Builders risk insurance

  • Annual Premium Cost: 1% –  4% of a project’s construction cost
  • Deductible: Varies

If you’re working as a subcontractor, this type of insurance is acquired by the top contractor on the job.

8. Inland marine insurance

This provides coverage for your tools and equipment while you have them on location at job sites and while they are in transit to and from the site.

9. Contractor Bonds

  • Annual Premium Cost: 1% –  15% of total bond amount
  • Deductible: None

While not strictly insurance, surety bonds act as a guarantee that you will complete the project as your contract states. Essentially, the bond issuer, often an insurance carrier, promises to reimburse your client if you fail to deliver on your contract. You then repay the issuer. Surety bonds can cost anywhere between 1% and 15% of the total bond amount.

How to Get the Best Insurance Policies for a Welding Business

Note that welding business insurance applications can be very detailed, but it’s critical to supply accurate information. Its how insurance providers determine whether they can insure you and how much it might cost. The more accurate you are, the more accurate your quotes and coverage proposals will be. A below are steps and tips that can help you during this process.

a. Have the Right Information

Unlike applying for financing, you are not expected to submit a bunch of documentation when you first apply for insurance. Howbeit, you will be expected to provide some basic information to verify your business and to determine how much of a risk you might be to the insurer. Before applying, you should gather the following information:

  • Business address
  • Full legal business name
  • Number of employees
  • Estimated business revenue for the next year
  • Number of years you’ve personally worked as a welder
  • Number of years your business has been in business
  • Details of any other insurance you currently have
  • Percentage of residential, commercial, and industrial jobs
  • Details of your business operations
  • Types and amounts of coverage you’re interested in

b. Classify Your Workers Correctly

When applying for workers’ compensation insurance, note that it usually requires classifying employees by job. It’s very crucial to get those classifications correct because it can save you money. For instance, office workers don’t present much risk, so their coverage is typically less expensive.

c. Work With a Broker

Have it in mind that brokers aren’t tied to a single insurance carrier, so they can often find the best deal on insurance. Although you will still have to provide the same information to potential insurers, but you get to see which carrier can offer you the right coverage at the most affordable rates.

However, brokers often charge fees that increase your overall costs. Nonetheless, if you choose to work with a broker, endeavour to find someone who has plenty of experience with many different insurance companies. They’ll need this experience in order to give you confidence that they’ll find you the best cost with the best coverage.

Best Companies/Providers That Offer Affordable Insurance Policies for a Welding Business

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 business, you need to protect your business interests with appropriate insurance for welders. An independent insurance agent can help.

i. CoverWallet

CoverWallet is better known as an online broker that focuses mainly on small business insurance, providing quotes from top providers like CAN and Liberty Mutual. Welding contractors can leverage its straightforward technology to apply for coverage, compare offers, make payments, and create certificates of insurance (COI) immediately after purchase. The process begins with a short online application, which returns quotes in seconds.

ii. Travelers

This company is a well – known insurance carrier that has a solid appetite for construction and contracting businesses. It offers BOPs with off – premises property limits of up to $25,000, covering tools and equipment at worksites and in transit.

Travelers’ BOP also automatically includes coverage for employee theft and damage to accounts receivable. Notwithstanding, the company does not have online quoting, but you can enter your ZIP code on its website to get the name of a local agent.

iii. AP Intego

This company offers you the ability to work with nationally licensed agents to compare multiple contractors’ insurance quotes from industry leading companies, such as Travelers and AmTrust. Artisan contractors, such as electricians, welders, plumbers, and painters, are always advised to work with AP Intego to get workers’ compensation.

The company also provides a pay – as – you – go plan that integrates with top payroll services so your workers’ comp premiums are based on your monthly payroll instead of a yearly estimate. This reduces the likelihood of an additional bill at the end of your policy term.

iv. Insureon

This company is another online-only agency that offers you access to multiple insurers through a single application. According to experts, what sets Insureon apart is the ability to quote hard – to – insure contractors through surplus – line carriers.

These carriers have the flexibility to write policies that standard insurers decline. The company only works with carriers with an A rating or higher, so you can trust your insurer is financially stable. Depending on your daily operations, Insureon may be the right option.

v. Surety Solutions

Have it in mind that bonds can be expensive, so it makes sense to comparison shop through an online broker like Surety Solutions. It’s the leading provider of surety bonds in all 50 states and claims to have worked with over 7,800 contractors, 90% of who paid less than $200 for their bonds. Contractors can apply for license and permit bonds online, and Surety Solutions ships free of charge.


Have it in mind that owning a welding business means you must take the necessary steps to ensure that your business is secure. The first thing 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.