And that is probably why mine is so high compared to what some are saying. It is for several men, some are family some are not but that really doesn't matter. Like workers comp is based on wages paid, it is based upon your yearly gross sales. Between shop and field, all men total we do a pretty fair volume. Being around $1-4 mil dollar homes with welding equipment, around AZ dry forests, in commercial bldgs with lots of high dollar equip (hospitals, gov bldg, colleges, new and remodel, etc.), Structural work, railings, obviously the insurance company thinks this makes us a higher risk. We have checked with many companies through the years, so far the policy we have has been unbeatable.
Just remember, classification of your insurance can be very important on larger jobs. If you don't have the correct class for what you are doing it can cause more headaches than you want. Example, our first agent signed us up as a sheet metal fab shop. When we got our first 'audit' the examiner started asking questions (under $200,000 I don't believe they audit you, just take your word for your work and volume), we got classified for structural, ornamental, and others, field is considerably higher than shop, our rates doubled overnight. But, if we had had a claim under the wrong coverage just to get low rates but be able to say we had insurance, it would have cancelled us and made it difficult to get insurance again with anyone.
My total bill is actually more between $700-800 per month because it also includes my building and property, customers who claim injuries while at my shop, renters in part of my building, etc. The amount in the above post I believe covers our business activities for the 2 mil gen agg.
It covers injuries, fires started- forest, building, equip, etc., products that fail for whatever reason and cause injury, death, or accident. It and the bonding and money paid to the Registrar of Contractors covers other problems with improper work quality that results in any problem-building failure, railing doesn't stop someone from falling because it was improperly attached, etc. It covers if truck rolls through a building and you get to start over, if the general will let you. Many other things covered depending upon your policy.
Takes money to make money, especially if you want to be adequately covered.
Have a Great Day, Brent
I recently picked up my insurance, general liability, something in there about marine, I think that is due to all the lakes and waterways around here but not sure. I have my truck on the same policy, my previous carrier would have had a cow if they knew. Truck has a million dollar policy in case there is an accident where I am sued. Full coverage on truck, bank still totes the note. Coverage for my tools that reside on the truck always. Now the kicker, my state, due to some shady contractors hiring "sub-contrators" that are really not "sub-contractors" but actual employees that the contractor does not want to pay workers comp on have screwed up what used to be the "I hire nobody, one man crew" clause. Now you have to pay workers comp regardless to the tune of $750 per year.
Grand total for my insurance, $2900, $700 down and $380ish for 7 months which means it'll be paid off in July....yippee!! Little bit of peace of mind.....although we should not need it if we do it right, but things happen.
Another thing to think about is not to have your biz as a sole proprietor but to incorporate or LLC so protect your personal assets. That's on the docket for my company this year, actually gonna turn over control to my wife as a partnership.
Yes, it gets expensive and this is why the hourly rates to run the "rig" are up there, operating costs plus you'd like to eat once in awhile. Don't check with places like allstate and so on. Find an indepentent insurance agent, allstate and such don't or can't come up with anything or anyone willing to carry us welders, at least that is what I was told by some agents who were not indy's.
Good luck!
Shawn
Inland marine coverage, in the case of a mobile welding business, insures your tools/equipment. As they are mobile, and land based.
Now if you put your welding rig on a barge, you would also need marine insurance.
JTMcC.
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