Insurance For Independent Welding Contractors

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I'm looking for better insurance providers for my welding business here in New Jersey. The various insurance companies and providers that I've had quote me on liability and Workmen's Comp here in NJ are talking telephone numbers! And, the down payment on new policies is just stupid money! Any suggestions? All are welcome.
Reply:Try a insurance broker they will work fore you not the company.
Reply:I did. Unfortunately, most of the insurance companies I spoke with will not deal with you directly, so you're stuck going through an insurance agent to bind policies.
Reply:Broker, not an agent. A broker represents multiple companies and can help you get the right coverage for you. It's in his best interest to get you what you need at the best possible price. he works for you. An agent works for a particular insurance company, though some may represent more than one on rare occasions, usually if the coverage doesn't overlap. It's in their best interest to get the insurance company the most money they can. There is a HUGE difference.Also be careful what you say that you do. Certain key words will hike your rates dramatically. In my general contracting business, if I say I use "scaffolding" my rates jump. I can work off a 40' extension ladder with no change, but 3' up on bakers scaffold jumps my rates. Also If I say I paint, my rates jump, as does saying I work on roofs. I have a long list of words my broker told me to never use if for any reason I have to talk directly with my insurance company as they can unreasonably hike my rates.Key words like "fabrication" imply design as well as welding and that usually hikes rates. As would saying you weld on vehicles and things that roll over the road. "Installation" can also open you up to other hazards like site liability or fire hazard in buildings as opposed to shop type work. Instead use words like "assemble" and note that you don't install items, only manufacture them for others to install. Also don't say you do "everything". I'm more tahn capable of digging and pouring footings for say an addition. However if I do that, my rates will jump as I have to add building collapse insurance to my policy. It's simply not worth it for the 1 time a year I might need it. At worst, I can always add it to my policy for a specific job, say if the GC or owner requires it. There's no reason to carry high dollar coverage just to cover the off chance I get a job I'll need it on.All this is stuff my broker covered with me when I 1st went into business. He quickly schooled me in what to say I did or didn't do so we tailored my policy to fit my needs as closely as possible to keep my rates low, but make sure I'm still fully covered should a problem arise.One thing many guys don't know, if you want your tools/materials covered against theft/damage, you will need a separate Inland Marine rider on your policy. Vehicle insurance or general liability doesn't cover that. Most find out way to late when they've been robbed that they didn't have coverage for what got taken or damaged..No government ever voluntarily reduces itself in size. Government programs, once launched, never disappear. Actually, a government bureau is the nearest thing to eternal life we'll ever see on this earth! Ronald Reagan
Reply:That sounds like some good information. I asked two welders in other states that I know what they are paying for general liability and Workmen's Comp? A general welder in Pa. told me he's about $2,800.00 & $900.00 a year, and pipe liner I know in Vermont is paying just under $2,400.00 and $985.00...those are reasonable rates. While I know this is New Jersey where everything is expensive, I don't regard $3,800-$4,200 for GL and $1,900.00 for WC in the realm of reasonable by any means! Time to find new insurance companies! Thanks again.
Reply:I'd kill for $900-1000 a year in workers comp. Last time I looked into it I had to go thru the state because I don't have enough business history to go with most companies. Minimum cost was $4-5K per year  IIRC and it doesn't even really cover me as the employer from what I understand. I can buy in, but it will cost me even more to get covered. As I'm self employed, I don't need it as long as I don't hire any subs. If I have workers or subs, I need to have enough coverage to cover them as well, thus probably my high minimum cost. I do have to sign a waiver and have it notarized for many townships to pull a permit since I can't provide proof of workers comp coverage..No government ever voluntarily reduces itself in size. Government programs, once launched, never disappear. Actually, a government bureau is the nearest thing to eternal life we'll ever see on this earth! Ronald Reagan
Reply:Guys, you are now in my area of knowledge, at least for the past 32 years. There is some good information in this thread, but it is mixed with a lot of garbage. More garbage than good information. Rates and coverage available differ greatly from State to State, county to county. The chances of two businesses paying the same insurance premium is almost impossible as there are too many factors that effect the price you pay. Insurance rates are based upon exposure, not words you use or don't use. Sent from my iPhone using TapatalkQualified & experienced at welding scrap metal


Reply:I don't expect to pay exactly what another independent is paying, but I know I can do better than what It's currently costing me. As for the Workmen's Comp, that's just it's own situation. You can have a policy declaration in writing that you're paying for in your company's name, but you can't be on it because you're the owner? What a bunch of bull****! I'd like to know what asswad at an insurance agency conjured up that loophole to charge more money??
Reply:It has to do with the fact I'm a sole proprietor vs say the business being incorporated and I'm now an empolyee. I'm not sure if the reasoning behind the way things are set up is done at the insurance company level or the state/fed level. I'm guessing state/fed level as I know several guys who work for themselves that have found out the hard way after they paid in for years they couldn't get workers comp. I think they made some changes a few years back that allows sole proprietors to "buy in" and cover themselves. My guess is part of the reason you aren't "covered" is it's way too easy for someone to defraud the system by simply saying they are hurt when business gets slow..No government ever voluntarily reduces itself in size. Government programs, once launched, never disappear. Actually, a government bureau is the nearest thing to eternal life we'll ever see on this earth! Ronald Reagan
Reply:Insurance companies do NOT write laws. They simply charge a premium for insurance coverage to keep you in compliance with said laws. People vote for and elect political leaders who say they will go after insurance companies without understanding that insurance is a Government regulated industry and that their political leaders not only established the system, they control it. Ever wonder why the system seems to favor lawyers? Ask yourself, how many politicians have a law degree.... Duh. Sent from my iPhone using TapatalkQualified & experienced at welding scrap metal


Reply:Yeah, very true...most politicians were lawyers and/or judges at some point in their careers.If it ain't broke, fix it 'til it is!
Reply:keep talking guys! this is stuff I need to learn!slowly making my way to work for myselfbosses stuff:trailblazer 325maxstar 200my stuff:sa 200fronius transpocket 180100 amp Lincoln w/f97 f350 DITKevin
Reply:Word to the wise regarding starting your own business. Although it's nice to have the admiration, respect and prestige of owning your own business, there are a lot of hurdles in the road that one has to contend with. When business is good, it's great...plenty of money, no worries. When it's bad, it sucks! As well, you'll have customers of various types to deal with. They range anywhere from the good ones that provide a lot of work and timely payments, to the bad ones that you see a few times a year that want everything for nothing that you have to chase down with a baseball bat to get paid! Unfortunately, there's not enough of the initial type, and too many of the latter type that think we work for nothing. And, this is just the tip of the iceberg...more to come.If it ain't broke, fix it 'til it is!
Reply:My best advice is find a good independent Agent, then sit down with him/her and asked to be educated on business insurance and what your options are. Each State is different. In some areas, the business owner can "opt out" (exclude himself from Workers Comp coverage), this allows for business to pay minimum WC comp premium based solely upon person they MAY HIRE during year.. On liability coverage, "Premises Only" coverage without products coverage MAY be an option to consider. There are risk associated with all these choices, so you really need one on one advice based upon the insurance laws of your State. Sent from my iPhone using TapatalkQualified & experienced at welding scrap metal


Reply:Initially, many thanks to all the Welding Web Forum members for what turned out to be some good, solid advice...it's well appreciated! Secondly, I found a broker here in New Jersey that specializes in insurance for self employed tradesmen and women. He shopped us around to different underwriters, and got us some really decent prices on liability and Workmen's Comp. We bound policies with him this morning so we don't have a lapse in coverage next month when the old policy expires. He also feels that given time, he can do even better by shopping us more. I'll keep everyone informed as to how it goes with his performance...he does write for businesses in other states, and might be able to help other members out here.If it ain't broke, fix it 'til it is!