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Why Exclusions Matter in Metal Fabrication Insurance
Many metal fabrication insurance claims fail not because a policy doesn’t exist, but because the specific activity, circumstance or loss is excluded or restricted by the wording. Welding, cutting, grinding, site work and environmental risks are often treated differently from “standard” manufacturing.
This page highlights the most common exclusions and policy gaps we see affecting fabricators, and explains how to structure cover correctly so your insurance responds when it’s needed.
1. Welding & Hot Works Exclusions
One of the most common and dangerous gaps in fabrication insurance is an undeclared or excluded hot works exposure.
- Policies excluding welding, cutting or grinding entirely
- Hot works only permitted in your own workshop, not on site
- Fire damage excluded unless strict permit conditions are met
- Higher excesses applied to fire or hot works claims
- No cover for work on high-risk premises (e.g. timber yards)
These exclusions often only appear in policy schedules or endorsements and are easily missed unless reviewed carefully.
2. Site Work, Installation & Structural Exclusions
Many “workshop-rated” policies restrict or exclude installation, erection or structural steelwork.
- No cover for work away from your own premises
- Exclusions for structural steel or load-bearing elements
- No cover for work at height or use of access equipment
- Installation risks excluded after delivery
- Contractual liability not picked up
If you fabricate and install, both stages must be insured – fabrication alone is not enough.
3. Products Liability & Defective Work Gaps
Fabricated items can fail after handover. Many businesses assume this is always covered – it often isn’t.
- Products liability not included or limited
- Exclusion for recall, replacement or rectification costs
- Design or specification errors excluded
- No cover for pure financial loss
- Claims arising from faulty materials supplied by others
Products liability typically covers injury or damage – not the cost of fixing your own work unless specifically arranged.
4. Pollution, Fumes & Gradual Damage Exclusions
Pollution exclusions are standard in many liability policies and often misunderstood.
- Gradual pollution excluded (dust, fumes, vapours)
- Limited cover only for sudden and accidental events
- No cover for clean-up or remediation costs
- Air quality and nuisance complaints excluded
- Environmental damage from fire-fighting runoff excluded
Dedicated environmental liability insurance may be needed where exposure is realistic.
5. Property, Machinery & Underinsurance
Property claims frequently fail or are reduced due to incorrect sums insured or restrictive conditions.
- Underinsured buildings or machinery
- Fire exclusions linked to hot works conditions
- No machinery breakdown cover
- Inadequate business interruption indemnity period
- Security conditions not complied with
Even valid claims can be reduced if average (underinsurance) applies.
How to Avoid Costly Insurance Gaps
The best way to avoid exclusions is proper disclosure, specialist advice and regular reviews. Metal fabrication risks change as businesses grow, diversify or take on new contracts.
- Fully disclose all fabrication and site activities
- Check endorsements and warranties carefully
- Align cover to contracts and client requirements
- Review sums insured annually
- Use a specialist broker who understands fabrication
FREQUENTLY ASKED QUESTIONS
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Why do insurance claims get declined?
Most declines relate to exclusions, non-disclosure, breach of conditions or underinsurance rather than lack of a policy.
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Are all exclusions bad?
No. Some exclusions are standard. Problems arise when exclusions affect your core activities and go unnoticed.
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Can exclusions be removed?
Some can, subject to underwriting and evidence of controls. Others may require different insurers or additional cover.