Get a Welding Insurance Quote

What is welding insurance?

As a welder you have an important role in industries, including construction, manufacturing, automotive, and aerospace. You also know that given the high temperatures, heavy machinery, and potentially hazardous materials involved, welding can pose significant safety and liability concerns.

Welding insurance includes various policies to cover specific risks. For instance, if you accidentally damage someone’s property, your commercial general liability insurance will handle the repair costs. It often covers your tools and equipment, and you can add extra protection, such as commercial property insurance, to safeguard your office, workshop, or storage facility from accidents.

Who needs welding insurance?

If you’re in the welding industry, having a welding insurance package is a smart move. This applies to:

Independent contractors: Freelancers or sole proprietors working on their own will benefit from this insurance.

Welding companies: Businesses offering welding services to both residential and commercial clients need this coverage.

Subcontractors: Those hired for specific tasks within larger projects should have their own insurance since they aren’t employees of the general contractor.

What does welding insurance cover?

Welding insurance provides protection for various aspects of your business:

Commercial general liability insurance (CGL): Essential for covering claims of property damage or injury caused by your welding activities. It can cover your entire team, though costs may increase with more employees.

Professional liability insurance: Also known as errors and omissions insurance, it covers claims that your welding work was not performed correctly. This helps with legal fees and costs if a client is dissatisfied.

Tools and equipment insurance: Reimburses you for lost, stolen, or damaged tools and equipment. Items under $1,500 are classified as tools, while more expensive items are considered equipment. Check your policy for specifics.

What insurance coverage add-ons are recommended for welders?

While there is a standard insurance package for welding that will cover you on most basis, many people in the industry choose to get additional protection. Here are some recommended insurance add-ons for welders:

Commercial auto insurance: If you or your employees use vehicles for your business, this insurance will be mandatory. Unlike personal vehicle insurance, this will cover your vehicle and tools that are in the vehicle in case of collisions.

Business interruption insurance: This policy will cover your business in case of accidents that prevent you from continuing operations. It will temporarily provide financial support for lost income and operating expenses.

How much does welding insurance cost in Canada?

Commercial general liability insurance is a starting point of all welders insurance. You can expect premiums to start between $1500 and $2000 per year for smaller welding businesses. This will get you a $1M annual limit. However, the cost of the policy will increase if you add tools/equipment insurance and pollution insurance.

It is worth noting that this is just a starting point. Depending on the specific of your business, add-on policies, and the other factors, costs can be higher.

What factors determine the cost of welding insurance rates?

Several factors affect the cost of welding insurance, and knowing these can help you manage your expenses better:

• Business size and type: If you run a larger business or do high-risk welding, you’ll likely pay higher premiums because of the increased risk. Insurers look at the size and type of your operations when setting rates.
• Experience and training: Your insurance rates might be lower if your team is well-trained and has a good safety record. Insurers often give better rates to businesses that focus on safety.
• Location: Where your business is located can impact your insurance costs. Areas with more claims or accidents usually have higher rates because they are seen as riskier.
• Coverage limits and deductibles: Choosing higher coverage limits or lower deductibles will generally increase your premium costs. This is because insurers have to account for the possibility of paying out more money.
• Claims History: If your business has had a lot of claims or serious ones, your insurance costs will likely be higher. Insurers see a history of claims as a sign of higher risk.
• Equipment value and condition: The value, age, and condition of your welding equipment can affect your insurance rates. Older or poorly maintained equipment might lead to higher premiums because they are more likely to fail or get damaged.
• Business revenue: Higher annual revenues can mean higher premiums. Bigger operations usually involve more risk, so insurers adjust the rates accordingly.

How does welding insurance work?

It is easy to think you can skip welding insurance, believing it only covers worst case scenarios. However, this is a mistake as a proper insurance policy can protect you from big and small liabilities.

• Property damage: If you are working on a construction site for a new building and you accidentally cause a fire, the welders insurance will cover payments for property damages up to the limit of your policy.
• Pollution: You are welding a tank holding oil in an industrial park and a pipe you welded leaks, causing an oil spill. Pullution coverage on your policy will pay for the cleanup costs.
• Lost equipment: Someone breaks into your business and steals valuable tools or equipment. Your welding insurance policy will pay up to a limit to replace the stolen equipment.

How to get the cheapest welding insurance quote

To get the cheapest welding insurance quote in Canada, consider these steps:

Compare multiple quotes: You should use different online platforms like RATESDOTCA to compare quotes from different insurers and find the most competitive rate.

Bundle your insurance: If you need different types of insurance, like general liability and commercial auto, getting them from the same company can often save you money.

Raise your deductible: Choosing a higher deductible can lower your monthly payments. Just make sure you can afford to pay the deductible if you need to make a claim.

Keep a good claims record: Having fewer claims can lead to lower insurance rates. Try to follow safety measures to avoid accidents and claims.

Pick the right coverage: Only pay for the insurance your business actually needs. For example, if you don’t use vehicles for your business, you can skip commercial auto insurance.

Ask about discounts: Some insurance companies offer discounts if you pay annually instead of monthly or if you have a good safety record.