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.
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The 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? | Yes | No | Included | Can be included | No |
| Hired/non-owned auto liability coverage included? | Yes | No | No | Can be included | Can be included |
| Equipment breakdown floater included? | No | Yes | Yes | Can be included | Can be included |
| Can you get a certificate of insurance online? | Yes | Yes | Yes | Yes | Yes |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| 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.
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
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
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.
| CoverWallet | NEXT | Thimble (Best) | Hiscox | The 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? | Yes | Yes | Yes | Yes | Yes |
| Waiver of subrogation included? | Yes | No | Yes | Can be included | No |
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
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
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.
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.
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.
Get all the best quotes from leading providers in a click of a button!
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The 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 signs | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Accounts receivable | Excluded | Excluded | $5,000/10,000 | Included | Excluded |
| Money and securities | Excluded | $2,500 | $1,000 | Included | Excluded |
| Lock and keys | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Business interruption floater | Excluded | Included | Included | Included | Excluded |
| Equipment breakdown floater | Excluded | Included | Excluded | Excluded | Excluded |
| Inland marine insurance floater | Excluded | Excluded | $10,000 | Excluded | Excluded |
| Employee dishonesty floater | Excluded | $5,000 | $2,500 | Included | Excluded |
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.
Here are the usual perils covered under commercial property insurance:
Fire
Theft
Vandalism
Storms
Riot
Sinkhole collapse
Lightning
Snow
Winds
Aircraft
Vehicles
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
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.
| CoverWallet | Thimble (Best) | NEXT | Hiscox | The 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? | Yes | Yes | Yes | Yes | Yes |
| Name additional insureds for free? | Yes | Yes | Yes | Yes | Yes |
| BOP discount? | Yes | Yes | Yes | Yes | Yes |
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
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
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
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.
| NEXT | Thimble | Hiscox | The 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/$5,000 | No | Yes |
| Miscellaneous equipment also covered? | $5,000/$10,000 | No | Yes | Yes |
| Offered as an endorsement to general liability insurance? | Yes | Yes | Yes | Yes |
| 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
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
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.
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
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.
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.
| Cost per Month | Cost per Year | Deductible | |
|---|---|---|---|
| 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 Month | Cost per Year | Best For | |
|---|---|---|---|
| NEXT | $24 | $288 | Best overall; Fastest general liability insurance for fabrication shops |
| CoverWallet | $26 | $312 | Comparing fabrication shop insurance quotes online |
| The Hartford | $28 | $336 | Fabrication businesses with unique insurance needs |
| Tivly | $31 | $372 | Comparing fabrication shop insurance quotes over the phone |
| Thimble | $35 | $420 | Fabrication businesses looking for temporary or event-based insurance policies |
| Hiscox | $37 | $444 | Fabrication businesses with complex insurance needs |
Get all the best quotes from leading providers in a click of a button!
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.
Customizable options
Have a mobile app
Several coverage options are available
You can manage your policies online
Rated by AM Best at A-(Excellent)
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
Easy application process
Can obtain information about your policy easily
You can shop from many providers
Free quotes
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
Flexible billing options
You can make claims online
Rated by AM Best at A+ (Superior)
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
Affordable insurance policies
Matches you with the ideal provider
Easy-to-use platform
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
Affordable premiums
Event-based policies available
Quick application process
Have a responsive app
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
Rated at AM Best at A (Excellent)
Has great financial strength
On-demand policies available
Customizable options
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
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
Not all those who wander are lost.
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