What Kind of Insurance Do I Need for a Machine Shop?
- Nate Jones, CPCU, ARM, CLCS, AU
- Oct 2
- 3 min read
Running a machine shop involves precision, high-value equipment, and exposure to risks — from workplace injuries to equipment breakdowns. Whether you specialize in CNC milling, metal fabrication, tooling, or welding, having the right insurance coverage is essential to protect your business, employees, and assets.
At Wexford Insurance, we specialize in helping machine shop owners find tailored insurance programs designed specifically for the machining and manufacturing industry. Here's a breakdown of the essential insurance policies every machine shop should consider.
This is the foundation of your coverage. It protects your business from third-party claims involving:
Bodily injury
Property damage
Legal defense costs
If a client or vendor is injured on your premises or you accidentally damage their property, general liability insurance helps cover the costs.
Learn more from Investopedia’s guide to general liability insurance.
Your shop likely houses expensive equipment, raw materials, and finished goods. Commercial property insurance protects:
Your building (owned or leased)
Machinery and tools
Inventory and computers
Damage from fire, theft, vandalism, or natural disasters
This coverage is essential for maintaining operations after unexpected events.
Machine shops rely heavily on CNC machines, lathes, mills, and welding stations. If a critical piece of equipment fails, it can halt production and cost thousands in repairs.
Equipment breakdown insurance covers:
Mechanical or electrical failure
Repair or replacement costs
Lost income due to downtime
If you have employees, workers compensation insurance is legally required in most states. It covers:
Medical expenses for work-related injuries
Lost wages during recovery
Rehabilitation costs
This policy protects both your team and your business from costly lawsuits and medical bills.
If your machine shop uses vehicles for deliveries, service calls, or transporting materials, commercial auto insurance is a must. It covers:
Vehicle damage
Liability for accidents
Medical expenses for injuries
Personal auto policies typically don’t cover business use, so make sure your vehicles are properly insured.
Why Choose Wexford Insurance?
At Wexford Insurance, we go beyond generic coverage. We understand the unique risks faced by machine shops and offer custom insurance solutions for:
CNC machining businesses
Metal fabrication shops
Welding and tooling operations
Here’s why machine shop owners trust us:
✅ Industry Expertise – We know the ins and outs of the machining world and tailor coverage to your specific operations.
✅ Fast, Friendly Service – Our agents are responsive, knowledgeable, and ready to help you navigate complex insurance decisions.
✅ Competitive Rates – We work with top carriers to find the best value for your coverage needs.
✅ Claims Support – When something goes wrong, we’re here to help you recover quickly and minimize downtime.
Let us help you build a custom insurance program that fits your shop’s needs.
Final Thoughts
Insurance isn’t just a safety net — it’s a strategic tool to protect your machine shop’s profitability and reputation. At Wexford Insurance, we understand the unique risks of the machining industry and offer specialized coverage for:
CNC machining businesses
Metal fabrication shops
Welding and tooling operations
Let us help you build a custom insurance program that fits your shop’s needs.
Contact Wexford Insurance today to get started.
