Who This Is For

Manufacturing businesses where welding is a core production process — including light to heavy manufacturers producing welded assemblies, production welding departments within larger manufacturing operations, contract manufacturers serving OEM customers across automotive, industrial, HVAC, agricultural equipment, and consumer goods sectors.

Risk Profile

Manufacturing welding operations face five significant exposures. Products and completed operations liability for mass-produced welded components is the primary long-tail risk — defective welds found in production runs can trigger batch recall claims and widespread product liability exposure. Workers compensation for production-floor welding employees addresses the high frequency of burns, eye injuries, fume exposure, and musculoskeletal claims in manufacturing environments. Property exposure for production facilities, specialized welding equipment, and raw material and finished goods inventory is substantial. Business interruption from equipment failure, fire, or facility damage can shut down production lines and trigger contractual penalties with OEM customers. Cyber liability is increasingly relevant for manufacturing operations with connected welding equipment, ERP systems, and OEM supply chain data.

Common Insurance Requirements

OEM customers and Tier 1 automotive suppliers require production welding vendors to carry $2M–$5M in products liability coverage with completed operations maintained beyond delivery, and often impose additional insured and waiver of subrogation requirements. Manufacturing clients in defense and aerospace supply chains may require $10M or more in total liability limits. Many OEM supply agreements include insurance verification as part of supplier qualification.

Recommended Coverage

Why the AWS Insurance Program

Production welding in a manufacturing environment combines the risk profile of a light manufacturer with the specific liabilities of a welding operation — a combination that standard commercial package insurers often handle poorly, resulting in exclusions for welding activities or inadequate products liability limits for OEM supply contracts. The AWS Insurance Program provides access to markets that treat manufacturing welding operations as a distinct and understood risk, with products liability structured to meet OEM requirements and property coverage that accounts for the true replacement value of specialized production equipment.