How Much Does It Cost to Start a Millwright Business?
- Nate Jones, CPCU, ARM, CLCS, AU
- Nov 12
- 2 min read
Updated: 1 day ago
Starting a millwright business can be a profitable venture, but it requires careful planning and a clear understanding of startup costs. From specialized tools to insurance coverage, every expense plays a role in your success.
In this guide, we’ll break down the major costs involved and explain how to protect your investment with the right insurance.
Why Understanding Startup Costs Matters
Millwright businesses operate in industrial environments where precision and safety are critical. Knowing your financial requirements upfront helps you budget effectively and avoid unexpected setbacks.
Key Startup Costs for a Millwright Business
1. Equipment and Tools
Millwright work demands precision tools and heavy-duty equipment. Common purchases include:
Precision measuring instruments (micrometers, dial indicators)
Rigging and lifting equipment
Welding tools and safety gear
Estimated cost: $10,000–$50,000 depending on the scale of your operations.
2. Vehicle and Transportation
You’ll need reliable transportation for tools and machinery. A work truck or van is essential for on-site jobs.
Estimated cost: $25,000–$60,000 for a new or used commercial vehicle.
3. Licensing and Permits
Millwright businesses often require:
State or local business licenses
Trade certifications
Estimated cost: $500–$2,000 depending on your location.
4. Insurance Costs
Insurance is one of the most important investments for your business. At Wexford Insurance, we specialize in millwright coverage, including:
General Liability Insurance: Protects against third-party claims.
Commercial Auto Insurance: Covers vehicles used for transporting tools and equipment.
Commercial Property Insurance: Safeguards your shop and stored equipment.
Workers’ Compensation: Required if you hire employees.
Equipment Insurance: Covers expensive machinery and tools.
Estimated cost: $3,000–$10,000 annually, depending on coverage and business size.
5. Office or Shop Space
If you plan to operate from a dedicated location, factor in rent, utilities, and setup costs.
Estimated cost: $1,000–$3,000 per month.
6. Marketing and Operational Costs
Building a client base requires marketing. Expenses include:
Website development
SEO and advertising
Business cards and branding
Struggling to market your business? Visit Contractor Back Office for website SEO and marketing support.
Tips for Budgeting and Financing
Start small: Lease equipment instead of buying upfront.
Secure financing: Explore small business loans or equipment financing.
Plan for insurance early: It’s often required for contracts and protects your investment.
How Insurance Protects Your Startup Investment
Insurance isn’t just a legal requirement — it’s a financial safeguard. From liability claims to equipment theft, the right coverage ensures your business stays operational even when unexpected events occur. Wexford Insurance offers tailored millwright insurance programs designed for your trade.
Final Thoughts
Starting a millwright business requires an investment in tools, vehicles, insurance, and marketing. While costs can range from $40,000 to $100,000 or more, proper planning and risk management make the venture worthwhile. Ready to protect your investment? Contact Wexford Insurance today.
