Welders and welding contractors are considered “green collar” workers because their trade pays significantly higher wages than most other construction or industrial contractors. It doesn’t really matter what the economy does as long as there is an industry that is thriving. Welding contractors can change industries in a moment’s notice without changing careers. In recent years there has been a recession that hit many careers hard, but welders simply shifted to working in the shipbuilding industry. The recent war has sparked a boom in defense spending and welders are a major part of that workforce.
According to the California CSLB, A welding contractor causes metal to become permanently attached, joined and fabricated by the use of gases and electrical energy, which creates temperatures of sufficient heat to perform this work. Certainly, these skills can present a significant risk to third-party injuries and property damage if something goes awry at the job site. Also, the risk of injuries to employees is substantial when you consider the hazardous tools required on the job. Fairbanks Insurance Brokers provides a package of insurance coverages that will protect the welding contractors, their employees, and their customers.
Having a General Liability policy is critical to operating as a welding contractor. Not only will your state require this coverage to be licensed, your business is continually at financial risk for claims of bodily injury and property damage. The general liability policy also covers defense costs which are typically significant with every claim filed.
The workers’ comp policy, which is required by most states to be licensed, is a critical coverage for employees of the contractor. Employees and subcontractors for the Welding contractor are continually at risk of work-related injuries, illness, and work loss, so having financial protection provided by workers’ compensation insurance not only protects employees but protects the business as well.
Many states require that contractors be bonded before they are issued a license and can begin operating their business. Your bond provides a financial guarantee to your customers that you will complete the job according to your bid and that any subcontractors or vendors will be paid when the job is completed. You may also be required to furnish other types of bonds like bid and performance bonds.
It goes without saying that a contractor in the business of welding steel or other metals in a building or underwater will routinely use trucks and vans with various GVWs. A commercial auto policy with sufficient limits will provide the liability coverage needed by your business, plus it will protect your vehicles in the event they are damaged in an accident or stolen.
When you have your tools and equipment insured under an inland marine policy, it will greatly reduce your out-of-pocket expenses if your tools or equipment are damaged or stolen at the job site, while in transit, or at your shop and warehouse. Tools and equipment used by a welding contractor are commonly transported to and from the job site which increases the risk of theft and damage. Having the appropriate tool and equipment coverage in place can mitigate these risks and provide needed financial protection.