Business Insurance for Welders
Welding
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How much does welding insurance cost?

Welders can save money on business insurance by comparing quotes from different providers with Insureon. Your premium depends on the type of insurance, coverage limits, deductibles, and factors such as your business's location and number of employees.

Top welder's insurance policies and their cost

Here are the top insurance policies purchased by welders and their average monthly premium:

Our figures are sourced from the median cost of policies for welders who apply for quotes with Insureon. The median offers a better estimate of what your business is likely to pay because it excludes outlier high and low premiums.

General liability insurance icon

General liability insurance

Welders pay an average of $123 per month, or $1,479 annually, for general liability insurance.

Commercial general liability insurance provides financial protection against common lawsuits from customers. It can cover costs if someone sues your welding business for a bodily injury, property damage, or copyright infringement.

This is the average policy for welders who buy from Insureon:

Premium: $123 per month
Policy limits: $1 million per occurrence; $2 million aggregate

The cost of a general liability insurance policy depends on factors such as the coverage limits you choose, the size of your business, the amount of foot traffic, and any subcontractors or additional insured endorsements. Learn more about how your premium is calculated.

Business owner’s policy icon

Business owner's policy

Construction businesses and contractors pay an average of $98 per month for a business owner's policy, or $1,173 annually. Only small, low-risk businesses are eligible for a BOP.

A BOP is an insurance package that bundles two important types of coverage at a discount. It includes general liability coverage to protect against common lawsuits, and commercial property insurance to cover vandalism, theft, and property damage.

This is the average business owner's policy for a construction contractor who buys from Insureon:

Premium: $98 per month
Policy limits: $1 million per occurrence; $2 million aggregate

The cost of a business owner's policy depends on factors such as the insurance options you choose, the size of your business, the amount of foot traffic, and the value of your business property.

Workers’ compensation insurance icon

Workers’ compensation insurance

Construction businesses and contractors pay an average of $254 per month for workers’ compensation insurance, or $3,054 annually.

Workers' comp helps cover medical expenses from work-related injuries and illnesses, such as burns or inhalation of dangerous fumes. Most policies include employer's liability insurance, which covers the cost of lawsuits related to workplace injuries.

There's usually no limit to how much a workers' comp policy can pay for employee benefits, though it depends on state laws.

The cost of a workers' compensation policy depends on factors such as the number of employees and the type of work they do. Learn more about how workers' comp costs are calculated.

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Commercial auto insurance

Construction businesses and contractors pay an average of $173 per month, or $2,075 per year, for commercial auto insurance.

Most states require this coverage for business-owned vehicles, such as a mobile welder's truck. For personal, rented, and leased vehicles used by your business, look to hired and non-owned auto insurance (HNOA) instead.

Commercial auto insurance covers financial losses in the event of an accident involving your business vehicle. It can help pay for property damage, medical bills, and legal costs. When buying a policy, you'll need to make sure your coverage limits match the requirements in your state.

The cost of a commercial auto policy depends on your coverage needs, the value of the vehicle, and your insurance claims history. Learn how insurers calculate your premium.

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Contractor’s tools and equipment coverage icon

Contractor’s tools and equipment insurance

Construction businesses and contractors pay an average of $14 per month for contractor’s tools and equipment insurance, or $169 annually.

A form of inland marine insurance, this policy covers your welding equipment whether it’s in your office, in transit, or at a job site. It can pay for lost, stolen, or damaged tools and equipment valued at $10,000 or less.

The cost of contractor's tools and equipment coverage depends on the value of your tools and equipment and the type of work you do.

Professional liability insurance icon

Professional liability insurance

Construction and contracting businesses pay an average of $74 per month for professional liability insurance, or $886 annually. Welders can often add this coverage to general liability insurance for a discount, with the bundle costing an average of $112 monthly.

Professional liability insurance protects welders from legal fees related to accusations of negligence or substandard work, such as failure of a welded item. It's sometimes referred to as errors and omissions insurance (E&O).

This is the average insurance coverage for construction and contracting professionals who buy from Insureon:

Premium: $74 per month
Policy limits: $1 million per occurrence; $1 million aggregate
Deductible: $1,250

The cost of professional liability insurance depends on factors such as the coverage limits you choose, the size of your business, and your profession. Find out how insurers set professional liability premiums.

Umbrella / excess liability insurance icon

Commercial umbrella insurance

Construction businesses and contractors pay an average of $81 per month, or $977 annually, for commercial umbrella insurance, which you can buy to boost the limits of your underlying general liability, commercial auto, or employer's liability insurance.

Umbrella insurance provides an additional safeguard and helps welders meet contractual demands for higher limits. When the underlying policy reaches its limit, commercial umbrella insurance activates to cover any costs over that limit, up to the limit of your umbrella policy.

The cost of commercial umbrella insurance depends primarily on the amount of coverage you purchase.

Surety bond icon

Surety bonds

Construction contractors and businesses pay an average of $8 per month, or $100 per year, for a surety bond.

A surety bond reimburses your client if you're unable to fulfill the terms of a contract or other agreement. You may need a surety bond to get a contractor's license for certain types of work.

The cost of a surety bond primarily depends on the size of the bond.

How do I get welding contractor insurance?

Insureon can help you find affordable welding business insurance policies in three easy steps:

  1. Fill out an easy online application with details about your business.
  2. Get free quotes from top-rated U.S. insurance providers.
  3. Select a policy and pay the premium to begin coverage.

A licensed insurance agent will help make sure your coverage matches state insurance requirements and your type of welding services, such as mobile welding or a welding shop. Once you've bought a policy, you can download a certificate of insurance for proof of coverage. Most small business owners can get covered within 24 hours of applying for quotes.

Updated: August 10, 2023
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