Welding can be a hazardous industry. According to SafetyCulture.com, over half a million workers are exposed to health and safety risks from welding each year in the United States. Safe work practices, proper training, and equipment maintenance help reduce the risks, but welders still need appropriate insurance. What kind of insurance should welders have, and what does it cost? Let’s find out.
- The 6 best welding business insurance companies
- What is welding business insurance?
- What kind of insurance does a welding business need?
- What does welding business insurance cover?
- How much does welding business insurance cost?
- What factors affect welding business insurance cost?
- How to find cheap welding business insurance?
- Where to get welding business insurance quotes online?
The 6 best welding business insurance companies
- InsurePro: Best for pay-per-day welding business insurance
- CoverWallet: Best for comparing several quotes online
- Simply Business: Best for finding low-cost welding coverage
- The Hartford: Best if you are ok working with an agent
- Thimble: Best for short-term welding coverage
- Next: Best for a comprehensive welding business insurance policy
InsurePro: Best for pay-per-day welding business insurance
InsurePro is another broker specializing in serving small businesses only. They are a newer broker with an innovative approach. They help small businesses save money on business insurance by buying the necessary coverage for a short period, even just a day. They work with several leading insurance companies to be able to offer small businesses with this pay-per-day coverage for all types of welding business insurance such as general liability, commercial property, and commercial auto insurance.
Pros
- Easy and fast to get quotes online within 10 minutes
- Can go from quote to purchase online
- Can buy a policy with coverage for just a few days
Cons
- Not available in all 50 states yet
CoverWallet: Best for comparing several quotes online
CoverWallet is an online insurance broker that provides multiple quotes. The company works with several well-known providers such as Liberty Mutual, Hiscox, Chubb, Progressive, etc. and many more that you may not be familiar with. You can apply for coverage online, compare the offers from multiple companies (typically, the broker returns the three top quotes for your business needs), select your policy, and manage payments and proof of insurance certificates all on the same website.
Third-party insurers supply insurance coverage through CoverWallet as CoverWallet is a brokerage. Applying for coverage through CoverWallet is simple and only takes minutes. You provide some identifying and business-specific information, and you will receive a quote quickly. The entire process takes about 10 minutes, and you can select and purchase your insurance on their site.
We obtained a quote from CoverWallet for general liability insurance for a 2-person welding business in Georgia. The quote that was returned was for coverage through Liberty Mutual.
Pros
- Multiple quotes in minutes. Best for comparing quotes online
- Convenience of an online process
Cons
- Third parties handle all underwriting
- Some types of quotes may not be available online
Simply Business: Best for finding low-cost coverage
Simply Business is another leading online insurance broker focused on serving small businesses in almost all industries.
Similar to CoverWallet, Simply Business works with top insurance companies and are able to pull quotes for you to compare in one screen. The main difference between Simply Business and CoverWallet is that as a broker, Simply Business is more focused on finding the cheapest coverage for you. Of course, you can always compare the quotes they provide. However, they usually return the quote that they believe is the cheapest for your business.
Pros
- Get multiple quotes online on one website
- Focused on finding the cheapest quote for your business
- Offers a resource library describing insurance needs for different businesses
Cons
- Sometimes, they may not be able to return quotes online for you to compare on one screen and you need to discuss your quote options on the phone with their agents
- If you particularly want to buy insurance from a carrier that they don’t work with, you are out of luck
The Hartford: Best if you are ok working with an agent
The Hartford has been in the insurance business since 1810. It’s one of the largest insurance and investment companies in the US. The company also has offices in England, Ireland, Japan, and Brazil.
The Hartford aims their services primarily at large businesses, but they have expanded to cover some smaller companies in recent years. As they expanded, they also enhanced their digital presence and now allow businesses to get quotes, buy policies, and manage them online. The company offers a vast selection of policies to virtually any industry.
Pros
- Well-known, reputable company
- Financially stable
- Offers a variety of business insurance solutions
Cons
- Can’t get quotes for some policies online
Thimble: Best for short-term welding business insurance coverage
Thimble is an online insurance agency offering coverage based on how long you need coverage. Thimble has one of the most straightforward quoting processes if you need coverage fast. You answer a few simple questions, and you receive a response in less than 10 minutes. The downside is that the company isn’t available everywhere and doesn’t offer coverage for every industry.
If you need welding business insurance coverage for just a few days or for a particular project and your client require you to have insurance, Thimble is a perfect provider for you. You will be able to save a lot of money getting a policy from Thimble in this case.
Pros
- Quick response time
- Offers coverage based on how long you need it
- Suitable for those who use contractors
Cons
- Customer support is only available online
NEXT: Best for a comprehensive welding contractor insurance policy
Next is a leading insuretech specializing in providing business insurance for contractors. They cater to a great variety of contractors, including welding contractors. Since it is their specialization, the policy they provide to welding contractors is very comprehensive, covering general liability, contractor professional liability, workers comp, and commercial auto insurance.
NEXT provides one of the best digital experiences, from providing quotes, buying a policy, and managing a policy, completely online.
Pros
- Specializing in providing insurance for a wide variety of contractors, including welding contractors
- Comprehensive policy, including coverage that welding contractors may need
- Great digital experience
- Competitive rates
Cons
- Relatively new company
What is welding business insurance?
Welding business insurance protects your welding business from financial damage stemming from mishaps at your facility or your customer’s site. Any business needs to maintain proper insurance coverage. With their hazardous nature, Welding businesses should be hyper-aware of the need for insurance coverage. Some clients require it before they hire you, and some states require it before you can be licensed in the industry.
What kind of insurance does a welding business need?
The most common insurance coverage needed in any business, but especially in a risky business, like welding, is general liability insurance. The coverage protects you against claims made by a third party, protecting you from financial ruin. General liability insurance isn’t a legal requirement, but it is a good business practice to have it. Learn more at general liability insurance cost and the best general liability insurance companies
Other kinds of insurance that welders should consider include professional liability insurance and commercial property insurance. In addition, some welders need commercial auto insurance, workers’ compensation insurance, and commercial umbrella insurance. A commercial umbrella policy is particularly beneficial to welders as it will provide extra liability protection if a lawsuit stemming from an accident exceeds the limits of other liability policies.
Learn more at professional liability insurance cost and the best professional liability insurance companies
Commercial property insurance cost and the best commercial property insurance companies
What does welding business insurance cover?
If you opt for a simple general liability insurance policy, it will typically cover the following things:
- Property damage
- Bodily injury
- Medical payments
- Personal and advertising injury
- Legal defense and judgments
Keep in mind that these policies pay property damage, bodily injury, and medical payments for a third party. You will need other coverage to protect yourself.
As an example of a third-party injury, consider the following scenario. A client has contracted with you for you to weld a small piece for a larger installation. They bring the pieces to your shop, and as they are leaving, they trip over a hose and fall, landing on their arm and breaking it. Your general liability policy would likely cover the ensuing medical bills caused by injuries resulting from that fall.
How much does welding business insurance cost?
If you add more coverages like professional liability or commercial property insurance or commercial auto insurance coverages, you will pay more. Below is the average cost of these coverages for a welding business.
The average welding business insurance cost is $70 per month or $840 per year. Some welding businesses may pay as low as $40 per month while other larger welding businesses may pay up to $150 per month. This is for general liability insurance, the most popular policy for welding businesses.
| Business welding insurance coverages | Average costs |
| General liability | $70 per month |
| Professional | $30 per month |
| Commercial property insurance | $120 per month |
| Commercial auto insurance | $155 per month |
These are just the averages. Your rates will be different. Make sure you shop around with a few companies to compare quotes before making the final decision. Simply Business, InsurePro, and CoverWallet are the top brokers that can help you compare several quotes.
What factors affect welding business insurance cost?
Multiple factors determine the final cost of your welding business insurance policy premiums. Below are some of these:
- Your business location
- Your business size: how many people you employ, your revenue, how many customers you have
- Your policy terms such as coverage limits and your deductible
- The coverages you get: Just general liability or other coverages as well
- Your experience and how long your business has been operational
- Your claim history
How to find cheap welding business insurance?
Welding business insurance is necessary. However, it doesn’t need to break the bank. Here are a few tips to find cheap coverage:
- Only get the coverage that you need. If you can only afford one policy, let it be general liability insurance
- Bundle coverages whenever you can to get discounts
- Ask for additional discounts and if you can be eligible
- Determine the right policy term: decrease coverage limits and increase deductibles will lower the premiums
- Follow safety protocols advised by the different industry trade group
- Shop around to compare several quotes. Work with top brokers like Simply Business, InsurePro, or CoverWallet
Where to get welding business insurance quotes?
If you know the insurance coverage you need to have, you can get welding business insurance quotes online. If you are not sure the coverage that you need yet or you prefer comparing several quotes in one place without having to gather quotes from different companies separately, you should work with a top broker. Below are a few carriers offering welding business insurance quotes online for your consideration:
- Carriers: NEXT, Thimble, and Hiscox
- Brokers: InsurePro, Simply Business, and CoverWallet
Final thoughts
Welding is a risky business. The risk makes it especially important for welders to have appropriate insurance. Contact your preferred insurance agent or broker to discuss the kinds of insurance you need and how much it will cost.
