BY BILL MCCLOY
Insurance costs are a critical concern for welding and gas businesses – especially those with large commercial fleets.
Shifting market dynamics, new technologies and regulatory changes continue to impact property and casualty coverages. Additionally, a major carrier exit in 2025 resulted in a more complex risk landscape.
PROPERTY INSURANCE MARKET REMAINS COMPETITIVE
Property insurance rates for welders and industrial gas suppliers remained relatively stable in 2025. Most accounts saw little to no change in their premiums, experiencing renewals that were either flat or in the single digits.
Accounts with significant CAT exposure or frequent or severe losses, however, are facing stricter underwriting standards. There has also been closer scrutiny on property valuations as carriers push for more accurate reporting and a greater focus on factors such as roof age and construction type, as well as mitigation and loss control efforts – all of which will significantly influence both pricing and availability.
CASUALTY INSURANCE MARKET RESPONDS TO SOCIAL INFLATION
Most accounts are seeing renewals that are either flat or in the single digits – especially in high excess layers – with the possible exception of large fleet exposures where sizable jury awards are impeding costs particularly in states like Texas, Georgia, California, Florida and Illinois.
State legislatures across the Southeast are advancing tort reform aimed at reducing frivolous litigation, limiting nuclear verdicts and improving transparency around third-party litigation funding. Florida, Georgia and Louisiana have all passed significant legislation impacting bad faith law, premises liability, expert testimony and litigation financing. These reforms are expected to reduce legal expenses, stabilize insurance markets and promote fairness, though their long-term impact will take time to measure as new laws are tested in court.
COMMERCIAL FLEET INSURANCE IS STILL A COST DRIVER
While pricing has stabilized somewhat, carriers are targeting low single digit increases to keep pace with inflation. Fuel prices and supply chain backlogs have also begun to stabilize and are slowly showing signs of improvement.
Commercial fleets have turned to telematics technology, real-time vehicle tracking, electronic logging devices (ELDs) and onboard cameras, offering a deeper view into driver habits and day-to-day operations. This data plays an integral role in commercial auto insurance, helping both fleet owners and underwriters better understand and manage risk.
Data alone will not and does not drive change. When complemented with a well-managed risk review, training and mitigation process, it can provide measurable improvements to efficiency, safety and compliance.
Fleets can now share transparent information, which insurers can quickly verify and use to potentially adjust pricing based on the associated risk. The outcome is often a smoother renewal processes, improved safety feedback loops and coverage that accurately matches the needs of the operation, without the need for constant oversight.
HOW TO MANAGE INSURANCE COSTS
As the insurance marketplace fluctuates, there are standard ways in which companies can help address costs. In addition to improving a risk profile, companies may want to consider restructuring their policies as follows:
Property Insurance
- Increase deductibles for all other perils (AOP)
- Separate deductibles for wind, hail, etc.
- Implement a percentage deductible for catastrophic (CAT) coverage
- Remove unnecessary endorsements and adjust to reflect limits (e.g., business income, equipment breakdown, extra expense, etc.)
Casualty Insurance
- Ensure robust indemnification language and require additional insured status as strong contract transfer may reduce your net exposure
- Increase any umbrella attachment point (if applicable)
- Decrease limits where possible
Companies with strong balance sheets and predictable losses are also looking for ways in which they may make take on additional risk themselves vs. insurance transfer.
And, finally, work with your insurance agent or broker partner to ensure that your application is complete and tells the full story. Be sure to provide a complete risk management overview along with any required loss runs, explanations and corrective action plans for any large losses. Photos should accompany a detailed operational description, and complete financial information should be included. Clarity helps improve the narrative for an underwriter.
FIND A PARTNER THAT UNDERSTANDS YOUR BUSINESS
When it comes to insurance, selecting a carrier that understands the welding and gas business is imperative. The global industrial gasses market size is expected to reach $134B by 2027, growing 5.5% annually. Market size for welding equipment distributors in the U.S. is $4B and expected to increase over the next five years.
Choosing a partner with unsurpassed knowledge of the industrial gas market can help protect you every step of the way. With limited programs available, working with a trusted advisor can provide you not only with peace of mind, but reliable protection and support.
