Insurance for Metal Fabrication Businesses

Insurance for Metal Fabrication Businesses

November 24, 2022 / 5 mins read

A mistake at your metal fabrication shop could lead to a lawsuit, an injury, or damaged equipment.

As your business grows, so can your risks. Protect your Prince George metal fabrication business with an insurance package that is customized for your needs.

Your Western business insurance expert can help you with an insurance package for a variety of metal fabrication businesses including:

  • Products for the forestry industry
  • Custom truck bodies
  • Heavy-duty bins
  • Staircases and step feeders
  • Sawhorses
  • Transfer tanks
  • Rock chutes
  • Metal cutting solutions
  • Custom Solutions

We’ve got the expertise and knowledge to get you the right metal fabrication insurance package, whether you are in Prince George or elsewhere in northern British Columbia.

What kind of construction insurance do I need?

A metal fabrication insurance package is a group of coverages that will protect your business.

Among common claims for your metal fabrication businesses are: Products liability, flooding and water damage, fire and explosion, natural catastrophe, theft, and equipment breakdown.

Go over the types of coverages you need in detail with your Western business insurance expert to make sure your metal fabrication business has the right insurance package.

Commercial General Liability (CGL) Insurance: It can cover you against claims for injury or property damage to others arising from your metal fabrication business or for false advertising. If you were sued for any of those claims, CGL would cover legal costs to defend a claim against your business in court, as well as costs to cover damages to compensate third parties.

CGL protects your metal fabrication business in the event of third-party injury (usually your customer) or property damage.

Without commercial liability insurance, you would be responsible for paying any liability costs out of your own pocket.

Ask your Western business insurance expert how much CGL insurance you will need to protect your metal fabrication business.

Manufacturers’ Errors and Omissions Insurance: This type of coverage can protect your metal fabrication business from financial loss and legal costs for errors such as:

  • Product failures
  • Design errors
  • Faulty installation
  • Improper use of raw materials

Equipment Breakdown Insurance: This type of insurance gives you coverage for property damage from the sudden and accidental breakdown of insured equipment not automatically covered by a standard commercial property policy.

It covers property damage, business interruption when it’s included in your policy, and spoiled inventory or contents when specified kinds of mechanical, electrical and pressure equipment are damaged, including power surges.

You can insure nearly everything for loss that is mechanical, electrical, electronic or under pressure due to breakdown. This also includes boilers, air conditioning, electrical panels, computers and security, and telephone systems.

Go over the specifics of equipment breakdown coverage with your Western business insurance expert.

Commercial Property Insurance: This type of insurance can help keep you protected from property losses, such as theft, vandalism, fire, and damage to tools or equipment that you need to keep your metal fabrication business operating. You can also add earthquake insurance, sewer backup or flood coverage extensions.

Cargo and Transit Insurance: Cargo coverage can cover losses if one of your metal fabrication products is lost, damaged, or stolen while being loaded, transported, or unloaded.

Business Interruption Insurance: You may want to consider adding business interruption insurance to your metal fabrication business. If there is an insured loss at your metal fabrication business that is severe enough to stop your operations, the expenses associated with getting your business running again will be covered.

Crime Insurance: This type of insurance will help protect your metal fabrication business against an employee’s criminal behavior, such as theft of money, securities, and property or forgery, or a third party’s criminal behavior. You will need to purchase an endorsement for insurance in your metal fabrication insurance package.

Cyber Liability Insurance: If you have customer data and other important information related to your metal fabrication business stored on computers, you could be at risk for a cyberattack or data breach. Cyberattacks are continuing to grow and cyber liability insurance is one of the fastest emerging insurance coverages.

Your Western business insurance expert will go over in detail how your business can benefit from cyber liability insurance.

Pollution Liability Insurance: Your metal fabrication business could be exposed to pollution liability claims due to the materials/chemicals that are part of the job. Pollution Liability Insurance protects your cannabis operation in the event of bodily injury, property damage and cleanup costs due to the release or escape of pollutants.

Fleet Insurance/Commercial Auto Insurance: If you have a minimum of five vehicles for your metal fabrication business, you need fleet insurance.

Fleet insurance protects your company’s vehicles used for work purposes from physical damage and offers liability coverage. Any vehicle that is used to transport materials, or tools and equipment for your metal fabrication business should have a commercial auto policy.

If you have a business car, truck, or van that you use as part of your business, it needs commercial coverage. Your personal car or truck insurance usually won’t cover your metal fabrication business.

Excess Liability Insurance: It extends your underlying liability policy to give you additional coverage limits in the event of a major claim.

How much metal fabrication business insurance do I need and how much will it cost?

Discuss the right amount of coverage for your metal fabrication business with your Western business insurance expert.

Since there are different types of metal fabrication businesses, it’s unlikely that all owners would pay the same monthly or annually for their coverage.

The cost of your policy would likely depend on a various factors, including:

  • The type of metal fabrication you do
  • Your business’s size and location
  • Number of employees
  • Annual and projected revenues
  • Past claims

Ask your Western business insurance expert to help you get the right coverage at the right value for your type of metal fabrication business.

Western Insurance has licensed BUSINESS INSURANCE EXPERTS to get your metal fabrication business the right insurance package. Our experts are available now to help you navigate the business insurance journey to protect your metal fabrication business.

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