Liability insurance questions

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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?
Reply: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.
Reply: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.
Reply:Originally Posted by RCcrawlerI 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?
Reply: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
Reply: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.
Reply: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 252Dynasty 210DXHobart 210MVPDoringer D350 SA Cold SawScotchman 350LT Cold SawWebb 10x50 MillWebb 15x40 LatheGeka Bendicrop Ironworker
Reply: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 threadhttps://weldingweb.com/vbb/showthrea...rance-questionEd Conleyhttp://www.screamingbroccoli.com/MM252MM211 (Sold)Passport Plus & Spool gunLincoln SP135 Plus- (Gone to a good home)Klutch 120v Plasma cutterSO 2020 benderBeer in the fridge
Reply:Originally Posted by Broccoli1Welcome 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 threadhttps://weldingweb.com/vbb/showthrea...rance-question
Reply: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.
Reply: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.JasonLincoln Idealarc 250 stick/tigThermal Dynamics Cutmaster 52Miller Bobcat 250Torchmate CNC tableThermal Arc Hefty 2Ironworkers Local 720
Reply: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.
Reply:Originally Posted by Broccoli1Welcome 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?
Reply:Originally Posted by RCcrawlerThank 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.
Reply: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.
Reply:There maybe some types work you do that will require to have liability insuranceLike 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  Originally Posted by RCcrawlerI 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?
Reply:Wait till you try to get oilfield related insurance and or insurance to work on railroad property
Reply:Must be the same as doing food processing. I think it is all about the sound cha ching makes on the insurance carrier end.Sent from my SM-G960U using Tapatalk
Reply:Here are a couple of links to some guys that have different ideas on this thought:https://www.shopfloortalk.com/forums...ad.php?t=13353https://www.shopfloortalk.com/forums...ad.php?t=15215I looked hard at this question myself years ago when I was starting my business.  It was safer and more "conventional" for me to set up an "S" corp and buy the business insurance.  The four most important people for me when I was starting up:CPABankerLawyerInsurance AgentDon't forget that even your vehicle has to be insured separately if you do business with it.  Regular "consumer' policies do not cover business related claims and some customers require a separate POI (proof of insurance) for the vehicle BEFORE they even let you drive on their property.Good Luck with your new business - It's the most fun and hardest thing you will probably do, but it is worth it!
Reply:Oh, and here's the other two I forgot.  Waaaay different viewpoint on insurance and being served!https://www.practicalmachinist.com/v...not-do-316550/https://www.practicalmachinist.com/v...served-316565/Not saying it's wrong, but not what I'm doing.  YMMV