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Fabrication Business Insurance: Cost & Quotes From $40/mo

Table of contents
1. General Liability Insurance for Fabrication Businesses 1.1. In What Incidents Will General Liability Insurance Will Help?1.2. Add-Ons to This Fabrication Shop Insurance1.3. Coverage Limits of General Liability Insurance for Fabrication Businesses2. Errors and Omissions Insurance for Fabrication Businesses2.1. Add-Ons to Errors and Omission Insurance for Fabrication Businesses2.2. What Are the Coverage Limits of Errors and Omissions Insurance?3. Product Liability Insurance for Fabrication Businesses3.1. What Are the Coverage Limits of Product Liability Insurance?4. Commercial Property Insurance for Fabrication Businesses4.1. What Are the Common Covered Perils?4.2. Add-Ons to Commercial Property Insurance for Fabrication Businesses 4.3. Coverage Limits of Commercial Property Insurance for Fabrication Businesses5. Business Owner’s Policy for Fabrication Businesses5.1. What Perils Can BOP Cover?5.2. Add-Ons to BOP for Fabrication Businesses5.3. Coverage Limits of BOP for Fabrication Businesses6. Tools and Equipment Insurance for Fabrication Businesses 6.1. What Are Common Add-Ons to Tools and Equipment Insurance?6.2. Coverage Limits of Tools and Equipment Insurance for Fabrication Businesses7. Workers' Compensation Insurance for Fabrication Businesses8. Excess Liability Insurance for Fabrication Businesses8.1. Coverage Limits of Excess Liability Insurance for Fabrication Businesses9. Fabrication Shop Insurance Cost10. Best Fabrication Shop Insurance Companies10.1. NEXT Fabrication Shop Insurance 10.1.1. Pros10.1.2. Cons10.2. CoverWallet Fabrication Shop Insurance 10.2.1. Pros10.2.2. Cons10.3. The Hartford Fabrication Shop Insurance 10.3.1. Pros10.3.2. Cons10.4. Tivly Fabrication Shop Insurance 10.4.1. Pros10.4.2. Cons10.5. Thimble Fabrication Shop Insurance 10.5.1. Pros10.5.2. Cons10.6. Hiscox Fabrication Shop Insurance 10.6.1. Pros10.6.2. Cons

Welders can’t create the intricate parts needed for a machine and fabrication businesses come to the rescue. Running a fabrication business is an excellent investment that promises huge returns. Although this business is exciting, there are so many risks involved. Accidents may happen since you are constantly dealing with heavy machinery, hot metals, and sharp tools.

With the right fabrication shop insurance, you can have peace of mind. If a fire erupts or your employee is injured while working, you won't have to face the financial repercussions alone. Your fabrication business insurance carrier will chip in, cover all the damages, and ensure your business is running again.



General Liability Insurance for Fabrication Businesses


CoverWalletNEXT (Best)ThimbleHiscoxThe Hartford
Per occurrence limit$1,000,000$1,000,000$1,000,000/$2,000,000$2,000,000$1,000,000/$2,000,000
Aggregate limit$2,000,000$2,000,000$1,000,000/$2,000,000$2,000,000$1,000,000/$2,000,000
Products and completed operations aggregate limit$2,000,000

$1,000,000$2,000,000$1,000,000$1,000,000
Advertising injury coverage aggregate limit$1,000,000$1,000,000$2,000,000$1,000,000$1,000,000
Tenant’s legal liability coverage limit$300,000/$1,000,000
$300,000$100,000$100,000$1,000,000
Waiver of subrogation included?YesNoIncludedCan be includedNo
Hired/non-owned auto liability coverage included?YesNoNoCan be includedCan be included
Equipment breakdown floater included?NoYesYesCan be includedCan be included
Can you get a certificate of insurance online?YesYesYesYesYes
Name additional insureds?YesYes
YesYesYes
Deductible$0$0$0$0$0


When operating your fabrication business, you pose many inherent risks to customers and nearby property. Accidents can occur when least expected, and you need general liability insurance to work as your financial backup. This insurance will protect you from third-party claims against your fabrication business.


In What Incidents Will General Liability Insurance Will Help?

  • A visitor or client is injured on your business premises

  • You damage someone's property, such as a car or building, while working

  • The products you sell harm your customers

  • A competitor sues your business over claims of slander or libel


Add-Ons to This Fabrication Shop Insurance

  • Cyber liability insurance–Your customer's sensitive information can leak while making online transactions. The customers will sue your business and this add-on protects you

  • Equipment breakdown insurance–An electrical failure or simple mechanical breakdown can make your equipment malfunction. This add-on covers replacement and repair costs


Coverage Limits of General Liability Insurance for Fabrication Businesses

The coverage limits for this steel fabricators insurance is $1 million to 2 million for each occurrence. To ensure you have better coverage, you can discuss how to adjust policy terms with your provider.


Errors and Omissions Insurance for Fabrication Businesses


CoverWalletNEXTThimble (Best)HiscoxThe Hartford
Per occurrence limit$1,000,000$1,000,000$1,000,000/$2,000,000$1,000,000$1,000,000
Aggregate limit$2,000,000$2,000,000$1,000,000/$2,000,000$1,000,000$2,000,000
Name additional insureds?YesYesYesYesYes
Waiver of subrogation included?YesNoYesCan be includedNo


Errors and omissions insurance offers coverage for claims related to negligence, mistakes, omissions, or errors. Some of the incidents this cover can help include:

  • Your business makes an error when designing products, making the product defective and injuring the customers.

  • Manufacturing defects that cause damage to your customers

  • You fail to meet a project deadline, and your customer suffers financial losses


Add-Ons to Errors and Omission Insurance for Fabrication Businesses

  • Prior acts coverage–This add-on will offer coverage for any claims to your fabrication work that occurred before you purchased your current primary policy

  • Contractual liability coverage–This add-on will cover you in the event you breach a client's contract and that breach leads to financial losses


What Are the Coverage Limits of Errors and Omissions Insurance?

The coverage limits for this metal fabrication insurance are a minimum of $100,000 for each occurrence and $500,000-$5,000,000 aggregate limit.


Product Liability Insurance for Fabrication Businesses

In the fabrication industry, you are actively making products for your customers. For instance, you can make car parts such as pistons and gears. But what if a customer complains that your products caused them injury? In such a scenario, the product's liability insurance will cover all costs due to claims of product defects.


What Are the Coverage Limits of Product Liability Insurance?

Product liability insurance coverage limits are $1 million to $10 million. If you sell high-risk products, you may require higher coverage limits. You can always request adjustments to the policy terms to suit your needs.

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Commercial Property Insurance for Fabrication Businesses


CoverWalletNEXT (Best)ThimbleHiscoxThe Hartford
Building coverage limit (minimum)$50,000$260,000$25,000/$500,000$25,000$60,000
Contents coverage limit (minimum)$50,000$22,000$25,000/$500,000$25,000$60,000
Outdoor signsExcluded$2,500ExcludedExcludedExcluded
Accounts receivableExcludedExcluded$5,000/10,000IncludedExcluded
Money and securitiesExcluded$2,500$1,000IncludedExcluded
Lock and keysExcluded$2,500ExcludedExcludedExcluded
Business interruption floaterExcludedIncludedIncludedIncludedExcluded
Equipment breakdown floaterExcludedIncludedExcludedExcludedExcluded
Inland marine insurance floaterExcludedExcluded$10,000ExcludedExcluded
Employee dishonesty floaterExcluded$5,000$2,500IncludedExcluded


When operating your fabrication business, you need physical assets such as buildings, equipment, or inventory. Whether you own or lease your property, you must have insurance coverage to protect your business from unforeseen risks. Commercial property insurance is the protection you require in case business property gets damaged.


What Are the Common Covered Perils?

Here are the usual perils covered under commercial property insurance:

  • Fire

  • Theft

  • Vandalism

  • Storms

  • Riot

  • Sinkhole collapse

  • Lightning

  • Snow

  • Winds

  • Aircraft

  • Vehicles


Add-Ons to Commercial Property Insurance for Fabrication Businesses

  • Flood insurance–Commercial property insurance may not cover some events, such as floods. As such, you need flood insurance as an add-on if your business is in flood-prone areas

  • Earthquake insurance–This add-on is fundamental if your fabrication business is in earthquake-prone areas


Coverage Limits of Commercial Property Insurance for Fabrication Businesses

Most insurance providers typically offer $100,000 to $500,000 for buildings and $50,000 to $500,000 for contents. But these figures can either be higher or lower depending on the risk profile of your fabrication business.


Business Owner’s Policy for Fabrication Businesses


CoverWalletThimble (Best)NEXTHiscoxThe Hartford
General liability aggregate limit$2,000,000$2,000,000$2,000,000$300,000$1,000,000/$2,000,000
Commercial property coverage limit$50,000$500,000$260,000$25,000$75,000
Optional policies can be added?YesYesYesYesYes
Name additional insureds for free?YesYesYesYesYes
BOP discount?YesYesYesYesYes


With a business owner's policy, you don't need to buy policies as standalone coverages. This policy allows you to merge two or more insurance products. Some of the coverages contained in this bundled policy include:

  • General liability insurance

  • Commercial property insurance

  • Business interruption insurance


What Perils Can BOP Cover?

Here are some of the perils covered under a business owner’s policy:

  • Damage to property caused by a covered event, such as a fire

  • Bodily injury to a customer or visitor

  • Business temporary closure due to a covered event

  • Advertising claims such as copyright infringement

  • Personal injury claims


Add-Ons to BOP for Fabrication Businesses

  • Professional liability coverage–This add-on covers any claims made toward your fabrication business for professional negligence, omissions, or errors

  • Customer property coverage–This add-on allows a business owner’s policy to reimburse a customer’s property that got lost or damaged while under your care, custody, and control


Coverage Limits of BOP for Fabrication Businesses

Insurance providers offer a coverage limit of $500,000 to $2 million. These limits can be adjusted to suit your exposed risks and the size of your fabrication business.


Tools and Equipment Insurance for Fabrication Businesses


NEXTThimbleHiscoxThe Hartford
Aggregate limit$3,000/$10,000$2,500/$5,000$15,000/$25,000$5,000-$10,000
Covers hired and borrowed equipment?$3,000/$10,000$2,500/$5,000NoYes
Miscellaneous equipment also covered?$5,000/$10,000NoYesYes
Offered as an endorsement to general liability insurance?YesYesYesYes
Deductible$500$500$0$0


You use several tools and equipment to engineer products in your fabrication business. Your items, such as welding equipment, hand tools, or power tools, must be insured appropriately from unforeseen perils. This fabrication shop insurance cover the following perils:

  • Theft

  • Vandalism

  • Theft

  • Damage

  • Natural disasters


What Are Common Add-Ons to Tools and Equipment Insurance?

  • Inland marine insurance–The tools and equipment insurance covers all items you use to conduct fabrication business in your commercial premises. The inland marine insurance is an integral add-on and will cover your items when they are in transit

  • Business interruption insurance–Covered events like fire can lead to temporary business cessation. This add-on covers all the lost income during this unfortunate period


Coverage Limits of Tools and Equipment Insurance for Fabrication Businesses

Most providers offer a total limit of $50,000 and $500,000 for all items and equipment insured in a specific policy period. If only one tool is lost or damaged, the provider will compensate you for the market value of your item.


Workers' Compensation Insurance for Fabrication Businesses

You have probably employed workers in your fabrication business to produce more products and increase customer satisfaction. However, accidents can happen, resulting in minor or severe injuries to your employees. In other unfortunate circumstances, the employees can even die.

That's why you need workers' compensation insurance to cover employee illnesses or injuries in their line of duty. This insurance is fundamental for your business whether you have one or many employees.This insurance offers employees some benefits such as:

  • Lost income benefits

  • Death benefits to beneficiaries

  • Rehabilitation benefits

  • Hospital bills

  • Medication


Excess Liability Insurance for Fabrication Businesses

If you are concerned that your primary liability policy will not offer adequate coverage, you can include excess liability insurance. This add-on metal fabrication insurance offers additional protection for your business.

For instance, a customer sues your business for professional negligence as they were injured by your defective products. The customer can seek $4 million compensation for damages suffered. But your errors and omission insurance can only offer a limit of $2 million. In this case, your excess liability insurance will cover the additional $2 million.


Coverage Limits of Excess Liability Insurance for Fabrication Businesses

The limits for this type of fabrication shop insurance can be $1 million to $5 million. The limits must be sufficient to cover all damages and losses, even in the worst-case scenarios.

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Fabrication Shop Insurance Cost


Cost per MonthCost per YearDeductible
General liability insurance$41$492$0-$500
Excess liability insurance$44$528$500-$1,000
Commercial property insurance$49$588$1,000-$2,000
Business owner's policy$90$1,080$1,500
Tools and equipment insurance$43$516$500-$1,000
Workers compensation insurance$121$1,452$2,500-$5,000


The average fabrication shop business insurance cost is $41 per month or $492 per year for a $1 million general liability coverage. Factors that affect the cost of premiums are claims history, business history, policy limits, deductibles, and more.

Premiums for fabrication business insurance will vary depending on the insurance carrier you select. Here’s a table showing the cost of a $1 million general liability insurance from companies we recommend:


Cost per MonthCost per YearBest For
NEXT$24$288Best overall; Fastest general liability insurance for fabrication shops
CoverWallet$26$312Comparing fabrication shop insurance quotes online
The Hartford$28$336Fabrication businesses with unique insurance needs
Tivly$31$372Comparing fabrication shop insurance quotes over the phone
Thimble$35$420Fabrication businesses looking for temporary or event-based insurance policies
Hiscox$37$444Fabrication businesses with complex insurance needs

Compare Cheap Fabrication Business Insurance Quotes Online

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Best Fabrication Shop Insurance Companies

So many insurance companies and brokers are mushrooming in the market and claiming to offer businesses insurance products. But you must be careful when transacting online, as some fraudulent companies may refuse to settle claims.

The goods news we have listed the most reputable insurance carriers and brokers for the best fabrication business insurance policies. Read some of the reviews below to know their pros, cons, and average rate for a $1 million general liability insurance.


NEXT Fabrication Shop Insurance

Pros

  • Customizable options

  • Have a mobile app

  • Several coverage options are available

  • You can manage your policies online

  • Rated by AM Best at A-(Excellent)

Cons

  • Couldn’t find any

NEXT is an insurance company that operates online. This company has customizable policies at a very affordable rate. NEXT has also invested in a mobile app that you can use to purchase your policies, download a certificate of insurance, and make claims using your phone. They allow monthly billing, which gives you so much flexibility. Also, they have live chat support that can help you manage your policies.

Best for: Best overall; Fastest general liability insurance for fabrication shops

Average cost: $24 per month

Our rating: 10/10


CoverWallet Fabrication Shop Insurance

Pros

  • Easy application process

  • Can obtain information about your policy easily

  • You can shop from many providers

  • Free quotes

Cons

  • Complains of slow customer service

CoverWallet is a well-known insurance marketplace. You can quickly fill out their application and obtain quotes from several insurance carrier partners. This company was started in 2015 and prides itself as a provider that offers businesses advice when taking out insurance coverage. CoverWallet reviews your insurance needs and connects you to the best provider. All your information is securely stored. Thus you can easily access your insurance information in future.

Best for: Comparing fabrication shop insurance quotes online

Average cost: $26 per month

Our rating: 10/10


The Hartford Fabrication Shop Insurance

Pros

  • Flexible billing options

  • You can make claims online

  • Rated by AM Best at A+ (Superior)

Cons

  • Premiums may be higher compared to the competitors

The Hartford has been in the insurance market since 1810. It is known for providing awesome deals on worker's compensation insurance. They also have incredible deals, such as pay-as-you-go payment options. This allows you to pay your premiums based on your actual payroll, eradicating the chances of overpayment. They also offer other types of insurance policies such as BOP, tools and equipment insurance, and employers’ liability insurance.

Best for: Fabrication businesses with unique insurance needs

Average cost: $28 per month

Our rating: 10/10


Tivly Fabrication Shop Insurance

Pros

  • Affordable insurance policies

  • Matches you with the ideal provider

  • Easy-to-use platform

Cons

  • Limited to some states

Tivly was started in 2009. This company started as Commercialinsurance.net but was later renamed to Tivly in 2022. It is a popular business insurance agency that connects you to various insurance providers. This company will connect you with the best provider of fabrication insurance or any other type of coverage you require for your business. Call now to compare quotes over the phone.

Best for: Comparing fabrication shop insurance quotes over the phone

Average cost: $31 per month

Our rating: 9/10


Thimble Fabrication Shop Insurance

Pros

  • Affordable premiums

  • Event-based policies available

  • Quick application process

  • Have a responsive app

Cons

  • Some of their policies, such as cyber insurance, are limited to some states

Thimble has invested in a mobile app. You can easily apply for their policies and manage them via the app. This company primarily focuses on offering event-based or on-demand coverage options. However, this company is a good fit for small businesses.

Best for: Fabrication businesses looking for temporary or event-based insurance policies

Average cost: $35 per month

Our rating: 9/10


Hiscox Fabrication Shop Insurance

Pros

  • Rated at AM Best at A (Excellent)

  • Has great financial strength

  • On-demand policies available

  • Customizable options

Cons

  • May have higher rates

Hiscox is another reputable carrier that offers the best deals for freelancers. They also focus on businesses with complex insurance needs, such as the automotive businesses or the medical field. You can tailor their policies to suit your needs. This company also offers short-term liability for business.

Best for: Fabrication businesses with complex insurance needs

Average cost: $37 per month

Our rating: 9/10


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