Welders Insurance Ontario

Welding Business Insurance for Ontario Welders

The earliest evidence of welding dates back 5,000 years, so welders are engaged in an ancient profession that is essential to our infrastructure and way of life in modern times. As a welder, you're already very well aware that your career comes with the potential for injury, but welders are exposed to risks that go beyond physical injury. From the possibility of losing necessary tools and welding equipment to theft or a disastrous event to potentially being accused of causing third-party injury or damage and having legal action brought against you in court, it's essential to have a risk management plan to prevent unexpected financial losses.   

A robust risk management plan starts with suitable welders insurance. Ontario welders can turn to the insurance experts at Morison Insurance to find out more when they begin a welders insurance quote and find the best options for necessary protection against paying out of pocket for unexpected expenses.

What is Welders Insurance?

Welders insurance, or welding business insurance, is a type of commercial business insurance package designed for welders in general and for your specific insurance needs. Welders sometimes choose to operate their business in different ways, meaning your insurance options and coverage limits must be tailored to address the perils you are most likely to encounter in your professional life.   

Two general categories of business insurance need to be considered when it comes to welders insurance: liability coverages and property coverage with loss of income coverages. Liability insurance can protect you by providing a defense or reimbursement of costs for legal expenses such as attorney fees and settlement costs if you are the target of a lawsuit. The reason for the lawsuit determines the type of liability insurance you need in order to be covered—if it's related to allegations that your work resulted in a polluting event, for example, you need pollution liability insurance.   

Who Needs to Have Welders Insurance?

Anyone who provides any welding services needs suitable welders insurance to protect themselves and their business from the severe consequences of major financial setbacks. That includes:   

• Commercial welders   
• Residential welders   
• Industrial welders   
• Oil and gas welders   
• Metal fabricators   
• Mobile welding service providers   
• Welding inspectors  

What Does Welding Business Insurance Cover?

There are many possible types of coverage you may need for your particular welders insurance package. Some of them are standard or baseline types of coverage that most, if not all, welders need, while others are more specialized and may or may not be necessary based on how you choose to run your business. Here are some of the critical types of welding business insurance that all welders should consider.

Commercial General Liability Insurance

Most types of businesses need commercial general liability (CGL) insurance, and that certainly applies to welding business insurance. It is liability protection against paying out of pocket for legal costs like attorney fees, court fees and settlements if you allegedly cause third-party bodily injury or third-party property damage. CGL insurance is essential for welders, whether they work in their own welding shop or travel to clients' sites to do welding jobs because there are plenty of opportunities to cause accidental injury or damage.   

Suppose you are accused of causing property damage or injury to a third party. In that case, you'll have to defend yourself in court—and if you're found liable, you'll be ordered to pay a settlement to the aggrieved party so they can recoup losses such as restoration or replacement costs, or loss of income while they recover from an injury. In a situation like that, your commercial general liability coverage on your welder's insurance means you can receive insurance compensation for your legal expenses and, in some cases, the settlement payments up to the coverage limits on your CGL policy.   

Products and Completed Operations Coverage

This is a specific type of commercial general liability insurance that is not typically included in a standard policy but should be added to a welder's insurance package. It provides liability coverage for allegations of third-party property damage or bodily injury that result from your work after it's completed or from a product you manufactured that has reached the consumer or end user.   

For example, if you welded a balcony railing and several years later, the railing collapsed, causing injury to someone who was leaning against it at the time. If the client alleges that the injury occurred because of negligent or faulty work on your part, they could bring legal action against you to recover the cost of repairing the damage and other expenses, such as their medical bills or lost income. Your legal defence and settlement costs would not be covered by basic CGL insurance because the injury occurred as a result of work that had already been completed for some time. Still, it can be covered by a product and completed operations addition to your welders insurance policy. 

Pollution Liability Insurance

Welding involves using potentially hazardous materials that can cause pollution if they end up in the wrong place, including gases and fumes from welding if not properly contained and dissipated. That's why pollution liability insurance is a highly recommended addition to welders insurance in Ontario. Pollution liability insurance covers the resulting costs from both a slow and a sudden polluting event. A slow pollution event would be something like small amounts of gas leaking over a long period, while a sudden pollution event could accidentally release a toxic substance into the soil.   

Expenses related to a pollution event can vary from government fines and financial penalties to clean-up fees, emergency response costs, and many other possible expenses. Suppose you have pollution liability coverage in your welders insurance package. In that case, you can get financial help from your insurance company for those costs should you be found liable for causing environmental damage up to the pollution liability limits on your policy.   

Tools and Equipment Coverage

Welding requires specialized tools and equipment, and some items are quite costly to replace. . If your tools were stolen or your equipment was damaged in a natural disaster or fire, it would significantly impact your ability to fulfill your contractual obligations and continue bringing in revenue. On top of that, you may have to transport your tools, materials and equipment to and from job sites instead of storing them in a workshop on your commercial property, which means there is a further risk that something could happen during transit or at a job site to make them unusable and throw a wrench in your business plans. Thankfully, there is insurance coverage to help with this, as well as ways to prevent the theft of tools, materials and equipment.   

Typically, a standard business insurance policy does not include coverage for tools, equipment, and materials that are being transported or kept at a job site. Therefore, consulting with a qualified insurance broker regarding tools and equipment insurance, a type of floater for inland marine insurance, is essential. This coverage is vital as it protects from bearing the costs of repairing or replacing stolen, vandalized, or damaged tools, equipment, and materials during transit or at a job site, making it a critical component of welders insurance in Ontario.   

Additional Welders Insurance Coverage

• Professional Liability Insurance   
• Commercial Cyber Liability Insurance   
• Commercial Vehicle Insurance   
• Commercial Property Insurance   
• Equipment Breakdown Insurance   
• Business Interruption Insurance   
• Inland Marine Insurance   

Is There a Legal Requirement to Have Welders Insurance in Ontario?

While it's true that most business professionals, such as welders, are not legally required to have business insurance in Canada, the absence of a legal mandate doesn't diminish its importance. It might be tempting to believe that you won't ever need to file a welders insurance claim because you'll be meticulous and do everything right, but relying solely on caution is not a prudent long-term strategy.   

Mistakes are inevitable, unforeseen circumstances like acts of nature arise, a spark smolders hours later, and it's possible to face accusations of harm or damage for which you aren't at fault, forcing you to defend yourself in court. The financial consequences stemming from these situations can quickly soar into the millions, and most individuals cannot handle that expense without enduring severe financial hardships. Spare yourself the stress and the uncertainty of fiscal setbacks by ensuring that your welding business is equipped with the appropriate welders insurance in Ontario, giving you access to the financial support necessary to rebound from unforeseen expenses quickly.   

It's also worth noting that some contractors, clients and other parties will only work with you if you can produce a certificate of insurance that lists the right kinds of coverage in the requested amounts. With welders insurance, you could be able to leave contracts on the table and seriously hamper the success of your welding business.

Do I Need Welders Insurance as a Subcontractor?

You do need at least some of your own insurance as a subcontractor. Your contract or agreement with the General Contractor or other companies that hire you as an independent sub-contractor will impact the terms of your own coverage. Welding contractor insurance or general policies do not typically cover subcontractors, but adding clauses for subcontractors to a welders insurance policy is possible. That means the first step is to determine if the company hiring you has coverage for you on their insurance and what it covers. For example, if you are exclusive to them and they have included you on their commercial general liability insurance, you may not need to purchase your own separate CGL coverage. That said, it's important to remember that contractor's insurance will only cover you on their job sites and work you only do under their supervision.  If you're working for multiple contractors across multiple sites, you must invest in your own welders insurance package that includes  liability coverage.   

That being said, it's important to remember that contractor's insurance will only cover you on their job sites. If you're working for multiple contractors across multiple sites, you must invest in your own welders insurance package that includes various liability coverage forms.   

What Determines the Cost of Welders Insurance?

Ontario insurance companies begin by assessing a wide range of factors to determine your risk exposures regarding the cost of insurance premiums for welders insurance. That includes information such as:   

• Annual and projected revenue   
• Your business location   
• Your level of experience   
• The services you provide or products you fabricate   
• The types of welders insurance and policy limits you need   
• The safety precautions you implement 
• Your insurance claims history   
• The size of your business   
• Whether you have previously had insurance coverage   
• The tools and equipment you use   

If you'd like to know more about what you can expect in terms of cost for welders insurance in Ontario, the best course of action is to contact Morison Insurance and talk to one of our knowledgeable brokers about a welders insurance quote. We'll ask the right questions to get to the bottom of what you need for welding business insurance coverage and offer you some estimates on potential costs, then find some quotes from insurance providers for you to review.  

Who Can I Speak to About Welders Insurance in Ontario?

If you need a welders insurance policy or want to update your existing coverage, rely on the dedicated team of experienced brokers at Morison Insurance. Call us today at 1-800-463-8074 to speak with a licensed insurance broker about a welders insurance quote. We work for you, not for the insurance companies, so your best interests are our priority, and we have the expertise necessary to track down the right coverages at a competitive rate. At Morison Insurance, we pride ourselves on providing the peace of mind of finding our clients the right insurance coverage.  

This content is written by our Morison Insurance team. It is provided for general information only. Insurance needs differ from person to person, and this article is therefore not a substitute for professional advice about your individual insurance needs which can be obtained by speaking to one of our brokers.