Welding Contractor Insurance: What You Need To Know
As a welding contractor, you run the risk of having legal action being brought against you for your legal responsibility for personal injuries or damage to property that occurs during the course of your work. Claims arising from these obligations can be costly to fight, and even more so if you are found legally culpable. Your welding contractors liability insurance will protect you from these losses by insuring you against awards made against you and your company as well as the costs of defending any claim.
What sort of liability insurance does a welding contractor need?
There are essentially two forms of liability insurance that need to be considered for the majority of companies. They apply whatever form of welding you undertake, whether that be structural welding, oil and gas welders, pipeline welders or even ornamental welders.
● General liability insurance protects you from claims alleging that you are legally liable for third-party personal injuries or property harm. Products liability insurance can be added to general liability insurance to shield you against claims resulting from the selling or delivery of a product.
● Employers liability insurance as known as workers compensation insurance coverage protects you against cases alleging that you are legally responsible for an employee's death, illness, or injury while they are on the job.
It is also worth bearing in mind that businesses that provide professional services may need to include professional liability insurance in their liability insurance plans.
The cost of liability insurance for welding contractors is determined by the risk information obtained by the underwriter, as is the case for all forms of insurance. Liability insurance is less expensive these days than it has been in recent years, but specific factors like working in dangerous environments, as well as the number of people employed in the company and whether you have ever had cases filed against you, will affect the premium that you pay.
What level of welding contractor liability insurance is needed?
The maximum amount an insurer will pay out on a single claim, or in certain situations, the maximum amount they will pay out in a year, is known as the limit of indemnity. You set this limit based on your specifications. Although other limits are possible for welding contractors, the most common limits under these policies are $1 million, $2 million, $5 million, and $10 million.
When determining this limit, consider how much coverage you think you'll need, which could be determined by the type of work you do or, more generally these days, contractual conditions such as demands for a certain limit from local authorities. The statutory minimum for employers' liability insurance or workers compensation insurance coverage is 100,000 / 100,000, 500,000 but in reality, plans are rarely released with a maximum of less than 500,000; higher limits are available upon request.
What excess is needed for contractor liability insurance?
The policy deductible is a sum of money that you are liable for on each and every allegation that arises under your policy. Property damage claims are usually subject to a policy deductible under the general liability insurance, which is typically $ 1000 or $2500. Under the workers compensation insurance coverage or employees compensation insurance plans, there is no policy deductible unless the employer elects to have one for employee injury claims.
Mountain Insurance-Montrose provides insurance to Welders in all industries in Colorado Springs and Montrose, Grand Junction, Ouray, Crested Butte, Gunnison, Telluride, and surrounding areas.