Who This Is For

Machine shops that perform welding as part of their manufacturing and machining services — including repair welding, fixture welding, build-up welding, weld-and-machine operations, and precision fabrication alongside CNC and manual machining. Many machine shops perform welding for structural, tooling, and repair applications as a secondary but important service.

Risk Profile

Machine shops face a combined risk profile that straddles machining and welding exposures. Property values are high due to CNC machining centers, lathes, mills, and precision measurement equipment — fire from welding operations represents a catastrophic risk to these assets. Products and completed operations liability applies to machined and welded components used in industrial, aerospace, automotive, and defense applications — defective components can generate significant claims that trace back to the manufacturing process. Workers compensation addresses the physical risks of operating precision equipment, lifting heavy workpieces, and performing hot work in a shop environment. Cyber liability is increasingly relevant for shops using networked CNC machines and production management software.

Common Insurance Requirements

Aerospace and defense prime contractors require their machining suppliers to carry $2M–$5M in combined GL and products liability, completed operations coverage extending beyond project delivery, and often professional liability if design or engineering services are included. Automotive Tier 1 and Tier 2 suppliers require robust products coverage with limits matching their supply contracts. AS9100-registered shops may face additional insurance requirements as a condition of maintaining their registration or serving certain customers.

Recommended Coverage

Why the AWS Insurance Program

Machine shops with welding capabilities often fall outside standard contractor programs (too much like a manufacturer) and outside standard manufacturer programs (too much welding). That gap can lead to coverage that excludes the welding operations or fails to account for the full value of precision equipment. The AWS Insurance Program bridges that gap — connecting machine shops with markets familiar with combined machining and welding risk, so your property, products liability, and operations are covered as an integrated whole rather than a collection of exclusions.