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Company insurance is intended to safeguard the financial assets of a firm owner and is a necessary investment for a laser cutting business.

Laser Cutting Companies Need Business Insurance

This article will discuss the primary insurance coverage for laser cutting enterprises, general liability insurance, as well as additional policies that are appropriate for this industry.

General Liability Coverage for Laser Cutting Companies

Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.

General liability insurance covers the following risks:

Physical harm

Damage to property

Medical expenses

Legal defence and decision

Personal and commercial harm

While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.


Example 1: A customer trips over some of your office equipment while meeting with you, resulting in bodily injuries. Their medical expenditures should be covered by your general liability coverage.

Example 2: You have applied to attend various conferences as part of your marketing plan. Each participant is required to have a minimum of $1 million in liability insurance during these gatherings. A general liability coverage will assist in meeting this requirement.

Example 3: Your employee loses control of a large handcart while carrying awards for your customer’s event, smashing the trophies and harming the venue’s floor. General liability insurance should cover the costs of legal counsel and court-awarded damages for lawsuits filed against you by both the consumer and the venue.

Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.

General Liability Insurance Cost

In the United States, laser cutting companies pay between $500 and $1,500 per year for $1 million in general liability insurance.

The cost of your coverage will be determined by a number of variables. Among them are your:



Employees’ number

Per-occurrence restriction

The overall aggregate limit

You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.

Other Types of Coverage Required by Laser Cutting Companies

While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all laser cutting enterprises should have are as follows:

Insurance for Product Liability

This is critical covering for company owners that make, supply, or sell items. If a customer is dissatisfied with your goods or is injured as a result of them, they have the right to sue you. Product liability insurance guarantees that you will be legally represented in court. Furthermore, if the court determines in favour of the claimant, it will pay damages up to the policy limits.

This sort of coverage is often provided as part of a business owner’s policy (BOP), and it may be tailored to the specific insurance requirements of the firm.

Insurance for Commercial Property

To secure your company’s assets, talk to your agent about the need of commercial property insurance. This insurance would repair or replace owned buildings, inventory, and equipment in the case of a covered loss, such as fire or windstorm. Renters should evaluate their lease conditions to discover whether they are liable for any aspect of the rented building, since many plans include supplementary endorsements to guarantee there are no gaps in coverage.

Commercial property insurance is often included in a company owner’s policy (BOP).

Coverage Options for Some Laser Cutting Companies

In addition to the insurance listed above, your laser cutting firm may need other forms of coverage based on particular features of your operations. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.

Insurance for Workers’ Compensation

This state-mandated regulation is required of all company owners that hire people. It provides medical coverage as well as a portion of lost pay to employees who are injured on the job. If you were sued over the claim, the insurance would also pay your legal fees.

This insurance is often acquired as a separate policy.

Additional Security Measures for Your Company

Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.

With this in mind, here are a few steps you can take to better secure your company:

Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)

To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)

Keep your company licences up to date.

Streamline the internal procedures of your company. This will remove unnecessary variables from common tasks and create a safe, consistent environment for conducting business.

If your business is an LLC, look into LLC Insurance.