Welding business insurance costs vary significantly across coverage types, affecting your budget planning. MoneyGeek's analysis shows monthly premiums range from $77 for professional liability coverage to $244 for a business owner's policy.
How Much Does Welding Business Insurance Cost?
Welding business insurance rates begin at $77 per month, but your specific business details will determine your actual cost.
Discover cheap welding business insurance below.
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Updated: August 21, 2025
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Key Takeaways
Welding business insurance costs range from $77 to $244 monthly, depending on your coverage type.
Your welding insurance premiums depend on location, claims history, property types serviced and employee count.
Shop multiple insurers, bundle policies, increase deductibles and pay annually to find affordable welding business insurance costs.
Average Welding Business Insurance Cost Overall
| BOP | $244 |
| General Liability | $166 |
| Professional Liability (E&O) | $77 |
| Workers' Comp | $117 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Welding Business Insurance Cost for General Liability Coverage by State
Your welding business general liability coverage costs vary by location. Maine offers the lowest rates at $144 monthly compared to the $166 national average, while New York tops the list at $193 monthly.
| Alabama | $162 |
| Alaska | $151 |
| Arizona | $157 |
| Arkansas | $159 |
| California | $185 |
| Colorado | $164 |
| Connecticut | $180 |
| Delaware | $178 |
| Florida | $179 |
| Georgia | $168 |
| Hawaii | $173 |
| Idaho | $157 |
| Illinois | $182 |
| Indiana | $162 |
| Iowa | $158 |
| Kansas | $161 |
| Kentucky | $154 |
| Louisiana | $187 |
| Maine | $144 |
| Maryland | $158 |
| Massachusetts | $174 |
| Michigan | $157 |
| Minnesota | $155 |
| Mississippi | $166 |
| Missouri | $163 |
| Montana | $165 |
| Nebraska | $157 |
| Nevada | $188 |
| New Hampshire | $165 |
| New Jersey | $188 |
| New Mexico | $167 |
| New York | $193 |
| North Carolina | $144 |
| North Dakota | $144 |
| Ohio | $154 |
| Oklahoma | $155 |
| Oregon | $154 |
| Pennsylvania | $191 |
| Rhode Island | $182 |
| South Carolina | $171 |
| South Dakota | $155 |
| Tennessee | $162 |
| Texas | $167 |
| Utah | $158 |
| Vermont | $159 |
| Virginia | $151 |
| Washington | $188 |
| West Virginia | $174 |
| Wisconsin | $163 |
| Wyoming | $153 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Welding Business Insurance Cost for Workers’ Compensation Coverage by State
Your welding business's cost for workers' compensation varies by state. North Carolina offers the lowest rates at $100 monthly and New York the highest at $137 monthly. Our analysis reveals how state regulations and claim histories create these differences.
| Alabama | $115 |
| Alaska | $107 |
| Arizona | $111 |
| Arkansas | $112 |
| California | $131 |
| Colorado | $116 |
| Connecticut | $127 |
| Delaware | $126 |
| Florida | $126 |
| Georgia | $118 |
| Hawaii | $122 |
| Idaho | $110 |
| Illinois | $128 |
| Indiana | $113 |
| Iowa | $113 |
| Kansas | $113 |
| Kentucky | $110 |
| Louisiana | $133 |
| Maine | $102 |
| Maryland | $111 |
| Massachusetts | $122 |
| Michigan | $111 |
| Minnesota | $111 |
| Mississippi | $118 |
| Missouri | $116 |
| Montana | $117 |
| Nebraska | $112 |
| Nevada | $132 |
| New Hampshire | $116 |
| New Jersey | $132 |
| New Mexico | $118 |
| New York | $137 |
| North Carolina | $100 |
| Oklahoma | $110 |
| Oregon | $108 |
| Pennsylvania | $135 |
| Rhode Island | $128 |
| South Carolina | $121 |
| South Dakota | $109 |
| Tennessee | $114 |
| Texas | $118 |
| Utah | $113 |
| Vermont | $113 |
| Virginia | $105 |
| West Virginia | $122 |
| Wisconsin | $115 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on workers’ comp policies. Workers' compensation requirements vary by state and are mandated by state regulations. Survey results reflect limited sample data and may not represent all available rates in your area.
Welding Business Insurance Cost for Professional Liability Coverage by State
Like other types of business coverage, your welding business's cost for professional liability varies by state. The national average for E&O insurance is $77 monthly, with Maine offering the lowest rates at $66 monthly and New York the highest at $90 monthly.
| Alabama | $78 |
| Alaska | $69 |
| Arizona | $75 |
| Arkansas | $74 |
| California | $85 |
| Colorado | $76 |
| Connecticut | $85 |
| Delaware | $82 |
| Florida | $84 |
| Georgia | $80 |
| Hawaii | $80 |
| Idaho | $72 |
| Illinois | $84 |
| Indiana | $74 |
| Iowa | $73 |
| Kansas | $74 |
| Kentucky | $72 |
| Louisiana | $87 |
| Maine | $66 |
| Maryland | $73 |
| Massachusetts | $81 |
| Michigan | $73 |
| Minnesota | $73 |
| Mississippi | $78 |
| Missouri | $77 |
| Montana | $77 |
| Nebraska | $73 |
| Nevada | $88 |
| New Hampshire | $75 |
| New Jersey | $87 |
| New Mexico | $79 |
| New York | $90 |
| North Carolina | $67 |
| North Dakota | $68 |
| Ohio | $71 |
| Oklahoma | $71 |
| Oregon | $71 |
| Pennsylvania | $90 |
| Rhode Island | $85 |
| South Carolina | $78 |
| South Dakota | $70 |
| Tennessee | $76 |
| Texas | $78 |
| Utah | $74 |
| Vermont | $75 |
| Virginia | $70 |
| Washington | $86 |
| West Virginia | $79 |
| Wisconsin | $74 |
| Wyoming | $70 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Welding Business Insurance Cost for BOP Coverage by State
Business owner's policy rates show substantial variation in welding business insurance costs nationwide. Monthly premiums range from $210 in North Dakota to $283 in New York for comparable coverage.
| Alabama | $235 |
| Alaska | $220 |
| Arizona | $231 |
| Arkansas | $230 |
| California | $278 |
| Colorado | $241 |
| Connecticut | $266 |
| Delaware | $256 |
| Florida | $261 |
| Georgia | $246 |
| Hawaii | $258 |
| Idaho | $233 |
| Illinois | $263 |
| Indiana | $235 |
| Iowa | $237 |
| Kansas | $238 |
| Kentucky | $226 |
| Louisiana | $278 |
| Maine | $220 |
| Maryland | $233 |
| Massachusetts | $255 |
| Michigan | $233 |
| Minnesota | $224 |
| Mississippi | $245 |
| Missouri | $246 |
| Montana | $241 |
| Nebraska | $238 |
| Nevada | $277 |
| New Hampshire | $243 |
| New Jersey | $280 |
| New Mexico | $243 |
| New York | $283 |
| North Carolina | $213 |
| North Dakota | $210 |
| Ohio | $227 |
| Oklahoma | $226 |
| Oregon | $228 |
| Pennsylvania | $282 |
| Rhode Island | $269 |
| South Carolina | $251 |
| South Dakota | $233 |
| Tennessee | $242 |
| Texas | $252 |
| Utah | $230 |
| Vermont | $230 |
| Virginia | $222 |
| Washington | $280 |
| West Virginia | $251 |
| Wisconsin | $237 |
| Wyoming | $226 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on BOP coverage. Survey results reflect limited sample data and may not represent all available rates in your area.
Factors Affecting Welding Business Insurance Cost
Insurance costs for your welding business are based on several factors that insurance companies review to set premium rates. Understanding these factors will help you create a more accurate budget. Let's explore what influences your rates.
Geographic location
Your business location affects workers' compensation rates due to local regulations and claim frequencies. Operating in areas with extreme weather conditions or strict welding codes increases your risk profile, and state differences create substantial premium variations.
Safety record and claims history
Previous claims impact future premiums, sometimes for three to five years. A single workplace injury or property damage incident can substantially increase your general liability rates at renewal.
Types of properties serviced
Industrial facilities and construction sites carry higher liability risks than standard commercial properties. Welding in chemical plants or refineries involves additional hazards and strict safety protocols, while structural welding on construction sites presents unique height and stability risks.
Employee count and payroll
Insurers calculate workers' comp premiums based on your total payroll and job classifications. Adding employees increases your payroll costs, directly impacting your workers' compensation premiums since insurers calculate your rates per dollar of wages paid.
Services offered
Different welding services carry varying risk levels that affect insurance costs. Mobile welding services face higher liability risks than shop-based operations, while specialized services like underwater welding require additional coverage.
Business size and revenue
Higher annual revenue typically means higher premiums since insurers view larger operations as having greater exposure to claims. A small welding shop earning $100,000 annually pays less than a commercial welding operation with $1 million in revenue.
Coverage limits
Higher coverage limits provide better protection but cost more monthly. Choosing between different coverage amounts directly affects your premium, with higher limits increasing costs proportionally.
Equipment and vehicle values
More expensive welding equipment and service vehicles require higher coverage limits, increasing your premiums. A company using advanced plasma cutters and specialized welding machines worth hundreds of thousands will pay more for equipment coverage than one using basic welding tools.
Credit score and financial stability
In most states, insurers can consider your business credit score when setting rates. A strong credit score can reduce premiums, while poor credit often increases costs substantially.
How to Get Cheap Welding Business Insurance
Smart welding business owners can lower their insurance costs through strategic shopping and risk management, and the proven tips below show exactly how to reduce your premiums.
- 1
Choose the right coverage types for your business
Understanding what types of business insurance your welding business needs prevents overpaying for unnecessary coverage. General liability protects against customer injuries and property damage, while workers' compensation covers employee injuries common in welding work. Equipment coverage is essential for protecting expensive welding machinery and tools.
- 2
Shop multiple insurance companies
Insurance rates can vary significantly between providers for the same coverage. Get quotes from at least three companies to find the best rates. Consider working with an independent agent who specializes in welding business coverage to handle comparison shopping for you.
- 3
Bundle your coverage types
Insurance companies offer substantial discounts when you bundle multiple policies. Combining general liability, commercial property, and workers' compensation with one carrier typically costs less than separate policies from different providers.
- 4
Increase your deductibles
Choosing higher deductibles reduces your monthly premium costs. You'll pay more out-of-pocket for claims, but the monthly savings can benefit businesses with strong safety protocols and few past claims.
- 5
Pay annually instead of monthly
Monthly payment processing fees add up quickly. Paying your premium annually eliminates these extra charges and often qualifies you for additional discounts.
- 6
Review and adjust your coverage annually
Your insurance needs change as your welding business grows. Review your policy yearly to ensure coverage matches your current operations. Remove unnecessary coverage and adjust limits based on your business size and risk exposure.
Insurance for Welding Business Cost: Bottom Line
Welding business insurance costs range from $77 to $244 monthly, with your location, claims history and business size driving your actual premium. Getting quotes from multiple insurers, bundling your policies, choosing higher deductibles and paying annually helps you find more affordable rates.
Welding Business Insurance Cost: FAQ
Business owners ask many questions about welding insurance costs, so we gathered expert answers to the most common questions below.
What is the cheapest type of welding business insurance?
Professional liability costs $77 monthly and is the most affordable option.
How much can I save by bundling my welding business insurance policies?
Bundling multiple policies through a single insurer offers the most cost-effective insurance solution. Combining general liability, commercial auto and property coverage typically saves 15 to 25% on total premiums.
What factors make my welding business insurance more expensive?
Several factors affect welding insurance rates: business location, claims history, employee count, project types, equipment value, safety protocols and annual revenue.
Should I choose a $500 or $2,500 deductible for my welding business insurance?
Higher deductibles lower your monthly premiums but require more out-of-pocket costs when filing claims. Consider your available cash reserves and claim likelihood when choosing your deductible.
How much does workers' compensation cost for welding businesses by state?
Monthly workers' compensation costs for welding businesses vary from $100 in North Carolina to $137 in New York, with most states falling between $110 and $125.
Is business owner's policy (BOP) worth the extra cost for welding companies?
A business owner's policy costs welding companies $244 per month and bundles essential coverages like general liability and commercial property insurance. This package deal offers better value than purchasing individual policies.
How often should I shop around for welding business insurance quotes?
Shop for new welding business insurance quotes annually during renewal time. Compare at least three insurers to find better rates, particularly if your business has grown or changed.
How We Determined Welding Business Insurance Costs
We collected welding business insurance quotes from companies across different states. For consistent comparisons, every quote used the same business setup:
- Two employees (three people total, including the owner)
- $150,000 annual payroll
- $300,000 annual revenue
- Already insured status
- $1 million per occurrence and $2 million total per year for all coverage except BOP, which includes the same limits plus $5,000 business property coverage
This profile represents small welding businesses requiring comprehensive insurance coverage in most states. We chose companies offering broad national coverage and online quote capabilities, focusing on insurers that actively serve the welding industry.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.