Results 1 to 16 of 16

Thread: Liability insurance questions

  1. #1
    Join Date
    Sep 2011
    Posts
    35
    Post Thanks / Like

    Liability insurance questions

    I am trying to start my own welding business. I do some small projects after i get home from my full-time job ( pipe welder in a shop). However, it seems like these little projects/jobs keep getting bigger and more involved. Right now, I do not have liability insurance. I am really picky about the jobs I take on. I don't do anything I think might cause damage if something were to fail/break. But, I know that is not the way to go with this.

    When should I get liability insurance? What is a good amount for a one man band to have?

    Also, out of curiosity, how much coverage do you have? and if you don't mind saying, what does it cost you?

  2. #2
    Join Date
    Aug 2019
    Location
    northeastern PA.
    Posts
    84
    Post Thanks / Like

    Re: Liability insurance questions

    I suppose you cant have enough insurance, due to "lawyers". Just don't forget that you are dealing with "people". Always make sure that the insurance CANNOT find a way to weasel out of paying the claim.

  3. #3
    Join Date
    Apr 2017
    Location
    Long Island, NY
    Posts
    345
    Post Thanks / Like

    Re: Liability insurance questions

    More importantly set up a LLC for your business. It will shield your personal assets and also allow you to properly track income and expenses.
    Lincoln Invertec V205-T Tig/stick
    Miller Coolmate 1.3 Coolant System
    Millermatic 211 Mig Welder
    Speedglas Adflo PAPR 9100 FX-Air
    CertiFlat FB2430 fabBlock U-Weld Kit Welding Table
    FW3012 CertiFlat fabWing 30" X 12" Extension Table

  4. #4
    Join Date
    Jan 2016
    Location
    northeast USA
    Posts
    9,147
    Post Thanks / Like

    Re: Liability insurance questions

    Quote Originally Posted by RCcrawler View Post
    I am trying to start my own welding business. I do some small projects after i get home from my full-time job ( pipe welder in a shop). However, it seems like these little projects/jobs keep getting bigger and more involved. Right now, I do not have liability insurance. I am really picky about the jobs I take on. I don't do anything I think might cause damage if something were to fail/break. But, I know that is not the way to go with this.

    When should I get liability insurance? What is a good amount for a one man band to have?

    Also, out of curiosity, how much coverage do you have? and if you don't mind saying, what does it cost you?
    the amount of liability insurance should be more than all your assets put together...see if working without insurance isnt criminal in your area, some of the areas I work( not welding but a trade) its criminal to work without liability insurance, as other have said , become a sub s corp. you get the best of both worlds, insulation of private assets and tax advantages on your personal income from your regular job...
    it doesnt matter how small a job you do the liability is still there..you weld something and it breaks off and hits someone causing an injury, you have a major liability right there, and if they goto the hospital, the hospital will come after you for medical bills...cost of insurance varies on what description you give your broker on the work you do...
    also get an umbrella policy for you home owners insurance, that will help out in personal coverage..

  5. #5
    Join Date
    May 2011
    Posts
    428
    Post Thanks / Like

    Re: Liability insurance questions

    There is no such thing as a side business when it comes to welding. If you get paid by check, you are an official business according to who gets sued. If you get cash, it never happened. It's called a paper trail, and lawyers follow it all the way to the end.

    In order to get insurance, you have to be a business. Companies dont insure side work for side money, with full liability.

    It is better to set up a LLC to separate business assets from personal assets.

    Now that said, in 14 years I have never had a claim as I reject jobs that I dont feel comfortable with, or are too shaky.

    As always, talk to a attorney. You get paid to weld, they get paid to do their jobs properly as well.


    Sent from my SM-G960U using Tapatalk

  6. Likes ronsii liked this post
  7. #6
    Join Date
    Nov 2010
    Location
    VA
    Posts
    2,561
    Post Thanks / Like

    Re: Liability insurance questions

    As far as hard numbers, you'll reach the time when your customers are the ones who choose your insurance limits. For example, I carry a $3 million aggregate because that's what's required by one of my customers. Others require $2m or $1m. It costs me a couple thousand a year. It also excludes me from certain types of work, such as pressure pipe, for example. When I run across something I need covered that's excluded, I call my agent and get the coverage modified. Sometimes it only costs a few bucks more.

    You'll eventually have customers wanting to be added to your insurance policy as additional named insureds. When you first get that request, don't freak out -- it's a normal thing. Each customer's insurance requirements will differ slightly. Others might want to be notified within an X amount of time after the work is done if your insurance is cancelled. For whatever reason, that's an expensive option to add...I think it was like $500 or so. I actually didn't take a job one time because of that rider -- the whole job was like $600 and it was a one-time thing for an out-of-state company.
    Applied Fabrications, LLC

    Mobile Welding / Mechanical Repair in VA's Piedmont & Shenandoah Valley

  8. #7
    Join Date
    Jul 2012
    Location
    Chicago, IL
    Posts
    717
    Post Thanks / Like

    Re: Liability insurance questions

    Insurance prices vary by quite a bit. If I remember correctly, when I started I got a $1M/occurrence, $2M total per year and I want to say I paid around $8-$900 per year for it. But it's also based on the type of welding you do, your location, and the amount of sales you do, as well as different companies. It's usually best to start with an insurance broker.
    John 3:16

    (2) Miller Pheonix 456
    (2) Millermertic 252
    Dynasty 210DX
    Hobart 210MVP
    Doringer D350 SA Cold Saw
    Scotchman 350LT Cold Saw
    Webb 10x50 Mill
    Webb 15x40 Lathe
    Geka Bendicrop Ironworker

  9. #8
    Join Date
    Dec 2007
    Location
    Los Angeles
    Posts
    7,821
    Post Thanks / Like

    Re: Liability insurance questions

    Welcome to the small business owner world.

    You need to sit down with an accountant and figure out how to set up your business, as mentioned in the other posts.

    *Personal protection and tax benefits; LLC, Sole proprietor , S Corp. which one is best for you?

    * Does your neighborhood allow in home businesses like yours?

    * Need a business license?


    Contact an Insurance agent- don't contact your Home owner's just yet
    *operating a business from home. What Insurance should you carry? How does this effect your Home Owner's Policy? Detached shop?

    Read this thread

    https://weldingweb.com/vbb/showthrea...rance-question
    Ed Conley
    http://www.screamingbroccoli.com/
    MM252
    MM211 (Sold)
    Passport Plus & Spool gun
    Lincoln SP135 Plus- (Gone to a good home)
    Miller 125c Plasma 120v
    SO 2020 bender
    Beer in the fridge

  10. Likes oldcrustyone liked this post
  11. #9
    Join Date
    Aug 2020
    Location
    Austin Texas
    Posts
    5
    Post Thanks / Like

    Re: Liability insurance questions

    Quote Originally Posted by Broccoli1 View Post
    Welcome to the small business owner world.

    You need to sit down with an accountant and figure out how to set up your business, as mentioned in the other posts.

    *Personal protection and tax benefits; LLC, Sole proprietor , S Corp. which one is best for you?

    * Does your neighborhood allow in home businesses like yours?

    * Need a business license?


    Contact an Insurance agent- don't contact your Home owner's just yet
    *operating a business from home. What Insurance should you carry? How does this effect your Home Owner's Policy? Detached shop?

    Read this thread

    https://weldingweb.com/vbb/showthrea...rance-question
    I can't second this suggestion enough! If you don't already have a CPA I would suggest retaining one before anything else. Seriously! The advice quoted in my response given by Broccoli1 is the best advice you may ever get.
    Russ Lane
    (Still Old and Crusty)
    Austin, Tx.

  12. #10
    Join Date
    Sep 2011
    Posts
    35
    Post Thanks / Like

    Re: Liability insurance questions

    Thank you for the replies guys. It seems like I have some work to do. This is a little more involved than I had thought. But, I definitely want to do it the right way. Time to start making some phone calls.

  13. #11
    Join Date
    Apr 2008
    Location
    NW ON Canada
    Posts
    3,437
    Post Thanks / Like

    Re: Liability insurance questions

    I'm a sole proprietor myself. I do have provincial and federal business licenses.
    Insurance has always been challenging with what we do. Most companies want nothing to do with welders and metal fabricators.
    Jason
    Lincoln Idealarc 250 stick/tig
    Thermal Dynamics Cutmaster 52
    Miller Bobcat 250
    Torchmate CNC table
    Thermal Arc Hefty 2
    Ironworkers Local 720

  14. #12
    Join Date
    Sep 2005
    Location
    Cave Creek AZ
    Posts
    2,938
    Post Thanks / Like

    Re: Liability insurance questions

    I carry a 2 million liability policy. I cannot do structural pieces, or security doors or it is voided. It costs me about a hundred a month. I have a buddy with a structural shop when that is needed. I primarily build big doors, occasionally do handrails, stair rails, Gates, etc. I got my insurance as soon as I got my contractors license, and it was about 2 years later that I left my corporate job to do this full time.

  15. #13
    Join Date
    Jul 2020
    Posts
    8
    Post Thanks / Like

    Re: Liability insurance questions

    Quote Originally Posted by Broccoli1 View Post
    Welcome to the small business owner world.

    You need to sit down with an accountant and figure out how to set up your business, as mentioned in the other posts.

    *Personal protection and tax benefits; LLC, Sole proprietor , S Corp. which one is best for you?

    * Does your neighborhood allow in home businesses like yours?

    * Need a business license?


    Contact an Insurance agent- don't contact your Home owner's just yet
    *operating a business from home. What Insurance should you carry? How does this effect your Home Owner's Policy? Detached shop?
    Excellent advice. I once relied on myself when opening a business, read a lot of information on the Internet and started. In the end, as it turned out, I did not take into account some details and it led to problems with the tax service. As a result, I still had to go to the professionals and they helped me solve the problem.
    So it is better to find out all the questions at once.

  16. #14
    Join Date
    Jul 2020
    Posts
    8
    Post Thanks / Like

    Re: Liability insurance questions

    Quote Originally Posted by RCcrawler View Post
    Thank you for the replies guys. It seems like I have some work to do. This is a little more involved than I had thought. But, I definitely want to do it the right way. Time to start making some phone calls.
    How are you doing? Have you been able to understand the issues related to starting a business?

  17. #15
    Join Date
    Jan 2006
    Location
    In A Nice Comfy Chair
    Posts
    18,784
    Post Thanks / Like

    Re: Liability insurance questions

    My landlord would not let me set up shop without a 1 million dollar liability policy.
    750$ a year so it's kinda a no brainer.

    ...zap!


    I am not completely insane..
    Some parts are missing

    Professional Driver on a closed course....
    Do not attempt.

    Just because I'm a dumbass don't mean that you can be too.
    So DON'T try any of this **** l do at home.

  18. #16
    Join Date
    Mar 2018
    Location
    Clovis California
    Posts
    1,843
    Post Thanks / Like

    Re: Liability insurance questions

    There maybe some types work you do that will require to have liability insurance
    Like zapster said $750 is cheap today.
    1) Never make mistake.
    2) If own nothing and just starting some will not buy insurance and just file chapter 11 or 13.
    3) The other way is have costumer sign a documentary that you working as employee.

    But only $62.50 a month is very cheap I find zapster insurance agent that is best way to go.

    Dave

    Quote Originally Posted by RCcrawler View Post
    I am trying to start my own welding business. I do some small projects after i get home from my full-time job ( pipe welder in a shop). However, it seems like these little projects/jobs keep getting bigger and more involved. Right now, I do not have liability insurance. I am really picky about the jobs I take on. I don't do anything I think might cause damage if something were to fail/break. But, I know that is not the way to go with this.

    When should I get liability insurance? What is a good amount for a one man band to have?

    Also, out of curiosity, how much coverage do you have? and if you don't mind saying, what does it cost you?

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Page generated in 1,603,885,866.96202 seconds with 12 queries