What is Business Insurance for Welders?
Business insurance for welders typically consists of public liability, employers’ liability, legal expenses, tool insurance, plant and machinery and contract works (these can be wrapped up in contractors’ all risks cover). Below we explain the different types of cover. For more information, see the NimbleFins welder insurance guide.
What insurances do you need for a welding business?
While a welding business may not be required by law to hold any insurance, it will certainly need public liability insurance at a minimum to be hired by any clients or win any contracts. Public liability is typically a contract requirement for most trade companies before another company or a client will work with it. Even when not required by a contract, a welder needs to have due to the riskiness of the occupation.
And if the welding business hires any employees, even temporary or part-time staff, they’ll need employers’ liability insurance (this is required by law). In addition, there are plenty of other types of insurance one can buy to protect a welding business against loss or damage to tools and equipment, as well as other risks.
Welding business insurance
Welding is a relatively dangerous business, so welders are well-advised to take out business insurance to protect against both liability claims and property loss. It can take years to build up a solid reputation and a roster of building partners. Without the right cover, an accident can quickly put an end to a successful business.
Public liability insurance for welders
Welder public liability insurance protects against accidental injury to third parties or damage to their property. As welders work with dangerous tools and conditions, this type of cover is a must. A public liability policy will cover legal expenses to defend a claim if one is brought against a welder, as well as any compensatory damages the welder is obliged to pay.
Public liability insurance for welders
Any welding business that hires employees will need to buy employers’ liability insurance – it’s required by law. Even when hiring temporary, part-time workers or you pay in cash. It’s there to protect both the business and the worker in case the worker is injured or falls ill due to their job. A business without this cover is not only breaking the law, but they can be made to pay £2,500 a day that they’re without insurance, or £1K if they can’t provide the certificate of insurance during an HSE inspection.
Tools and equipment insurance for welders
Welders work with expensive tools and equipment, which can be protected against theft or loss – a welder can even get coverage for any hired-in plant. While tools cover protects against “loss”, this does not mean simply losing or misplacing tools. The insurance usually entails protection if covered tools and equipment are “lost” due to an unexpected event like a fire or flood. And tools cover won’t usually protect against malfunction or failure – that’s what the warranty is for – or wear and tear.
Welding is a more dangerous occupation so that personal accident cover can be a critical risk management tool for any welder or welding business. Personal injury can provide short-term payments to help replace lost income while someone is off work while recovering from an injury; you can also get the coverage that pays a lump-sum payment in the case of a more serious injury that will have long-term effects or death.
Personal injury cover is priced per person, so the more people in the welding business, the higher the premiums will be.
To round out their business insurance, a welder can buy legal expenses cover. This protects against things like contract disputes, HMRC tax investigations and debt recovery if a client fails to pay.
Welding business insurance cost
Insurance costs for a welding business start from around £265 a year for basic £2M public liability insurance only. A welding business is likely to want a higher cover or additional coverages, which will add to the cost.
For example, increasing to £5M of public liability would increase the cost by around a third. And adding other popular coverages for welders like tools cover and a personal accident would further increase the price.
A welder could expect to spend at least £150 or so to get £2K of tools and equipment insurance, although the costs will be higher to protect any tools left in a van overnight. The safest way to store tools is inside a locked and secure building, not in a van, so welders who can take their tools in at night will pay less to insure these tools against loss.
As welding is a dangerous occupation, personal accident cover does not come cheap. A welder might be able to find personal accident cover from £100 a year, but as with all insurance coverages, prices can vary considerably from one person to the next.