Metal Fabrication Coverage Guide
Metal fab carries one of the highest WC class rates in manufacturing — amputation risk from press brakes/shears, eye injuries, hearing loss claims. Welding-fume occupational disease is a long-tail exposure.
Critical Coverage
General Liability
Covers third-party bodily injury and property damage claims
What it covers
Premises, third-party injury, advertising injury.
Common misconception
Plant traffic from suppliers, drivers, contractors.
What it does NOT cover
Product liability. Pollution.
The gap — what happens without it
Visitor injured on shop floor — $40K. GL pays.
What drives your premium
Plant, employees
Endorsements to ask about
Hired/non-owned auto.
Workers' Compensation
Covers employee injuries and illnesses on the job
What it covers
Amputation injuries (press brakes, shears — top severity loss), eye injuries, hearing loss (long-tail), lacerations, burns from welding.
Common misconception
Metal fab has one of the highest WC class rates in manufacturing — claims are frequent and severe.
What it does NOT cover
Owner exemption.
The gap — what happens without it
Press brake amputation — $480K medical, lifetime wage. WC pays statutorily.
What drives your premium
Payroll, class codes (3081, 3372, 3724), state, machine guards, claims
Endorsements to ask about
Voluntary comp. Higher EL.
Commercial Property
Covers your building, equipment, and inventory
What it covers
Building, equipment (CNC, press brakes, lasers), inventory.
Common misconception
Single CNC machines run $250K+; lasers $500K+.
What it does NOT cover
Flood. Earthquake. Mechanical breakdown.
The gap — what happens without it
Fire damages CNC equipment — $400K. Property pays.
What drives your premium
Equipment, fire suppression
Endorsements to ask about
Equipment breakdown. Business income.
Product Liability
Covers claims from products you manufacture, sell, or distribute
What it covers
Failed welds, stress cracks, structural failures from your fabricated products.
Common misconception
Fabricators think client engineering specs protect them. Failed weld claims regularly find their way back to the fabricator.
What it does NOT cover
Recall costs. Intentional acts.
The gap — what happens without it
A failed structural weld on a custom rack causes injury — $240K claim. Product liability pays.
What drives your premium
Product types, end use, claims
Endorsements to ask about
Failure-to-perform. Recall.
Important Coverage
Commercial Umbrella
Extends limits above your primary policies
What it covers
Excess over GL/auto/EL/product.
Common misconception
Severity in metal fab justifies high umbrella.
What it does NOT cover
Pollution unless follow.
The gap — what happens without it
Severe injury claim hits $3M — umbrella pays excess.
What drives your premium
Underlying, claims
Endorsements to ask about
Follow-form.
Situational Coverage
Pollution Liability
Covers environmental contamination claims excluded by GL
What it covers
Cutting fluids, fumes, paint/finishing pollution.
Common misconception
Most fabricators don't realize cutting fluid disposal and welding fumes create regulatory exposure.
What it does NOT cover
Pre-existing. Knowing.
The gap — what happens without it
Cutting fluid spill enters storm drain — $40K cleanup. Pollution pays.
What drives your premium
Chemicals, paint
Endorsements to ask about
Coating/finishing pollution.
Not sure what you need?
Text us your trade and state — we'll tell you exactly what coverages apply to your business and shop the market for the best rate.