The Hot Work Exclusion That Can Leave a Welding Business Uninsured
Most liability policies carve out fire damage from welding, cutting or grinding unless the work is carried out compliantly. It's one of the most common exclusions insurers apply to this kind of work.
By Jack O'Hagan, Co-Founder & Insurance Broker
Published 4 September 2026 · 4 min read
In this guide
Most liability and property policies carry a hot work exclusion. It commonly applies to fire or explosion damage caused by welding, flame cutting, arc cutting or grinding unless the work was carried out compliantly, though the exact wording varies from insurer to insurer. It’s one of the most common carve-outs insurers apply to this kind of work. It’s a conditional exclusion rather than a blanket ban on welding itself.
A conditional exclusion
applies when the work wasn't carried out compliantly, not to hot work as an activity
One of the most common carve-outs
insurers apply a hot work exclusion across most liability and property policies
Compliance is what's tested
not whether a fire happened but whether the work met the required standard at the time
Does public liability insurance cover welding and hot work?
Generally yes, for hot work carried out compliantly. The exclusion sits on top of the base cover, not in place of it. Standard public liability cover responds to third party injury or property damage caused by welding and fabrication work in the ordinary course of business. The hot work exclusion only switches off that cover for fire or explosion damage where the work wasn’t done to the required standard at the time.
A hot work exclusion doesn't ask whether a fire happened. It asks whether the work was carried out compliantly before it did.
What does the hot work exclusion commonly apply to?
It commonly applies to flame cutting, flame heating, arc or gas welding, grinding and similar operations using welding, cutting or grinding equipment, though the exact wording and scope varies from one insurer’s policy to the next. What stays consistent is the structure of the exclusion. It removes cover for fire or explosion damage from this kind of work unless it was carried out compliantly. That compliance requirement is the whole exclusion. Work that’s compliant keeps its cover. Work that isn’t can lose it, even where the welder holds an otherwise valid policy.
Why do insurers carve hot work out like this?
Welding and cutting carry a genuine fire and explosion risk that most other trade activities don’t. Rather than declining to cover welding businesses altogether, insurers make the cover conditional on the work being carried out compliantly. It’s a common approach across this kind of risk, not something specific to any one insurer. It shows up on liability and property cover alike.
What happens if a fire starts during welding work?
This is where the exclusion is tested in practice. If a fire breaks out during or shortly after hot work and spreads to damage the site or a neighbouring property, whether liability cover responds generally comes down to whether the work was actually being carried out compliantly at the time, not just whether a policy was in place. This is the moment the exclusion is written for.
Does the exclusion apply to a business pack as well as public liability?
Yes. A hot work exclusion commonly sits on the property section of a business pack as well as public liability, since a welding fire can damage the workshop or the equipment inside it, not just a third party’s property. The same compliance question decides both. Welding businesses that also design or certify a structure, rather than executing work to someone else’s specification, carry a separate professional indemnity exposure worth reviewing alongside this.
Key Takeaways
- Most liability and property policies carve out fire or explosion damage from welding, cutting or grinding unless the work was carried out compliantly.
- It's a conditional exclusion and one of the most common carve-outs insurers apply to this kind of work, not a blanket ban on welding itself.
- The same exclusion commonly sits on both public liability and the property section of a business pack.
- Professional indemnity is a separate exposure, relevant only where the business also designs or certifies a weld rather than carrying it out to specification.
The information in this article is general in nature and does not constitute legal, financial or insurance advice. Please speak with a qualified adviser about your specific circumstances.
Not sure how this applies to your situation?
Frequently asked questions
Does public liability insurance cover welding and hot work?
Generally yes, for work carried out compliantly. Most policies carry a hot work exclusion that commonly applies to fire or explosion damage caused by welding, flame cutting, arc cutting or grinding where the work wasn't done to the required standard, though the exact wording varies by insurer. It's a conditional exclusion, not a blanket ban on welding as an activity.
What is a hot work exclusion?
A hot work exclusion is a condition attached to liability and property policies that commonly applies to fire or explosion damage caused by welding, flame cutting, arc or gas welding, grinding or similar equipment, unless the work was carried out compliantly. The exact wording differs from insurer to insurer. It's still one of the most common carve-outs applied to this kind of work.
What counts as hot work for insurance purposes?
It commonly covers flame cutting, flame heating, arc or gas welding, grinding and similar operations using welding, cutting or grinding equipment, though the exact list depends on the policy. Anywhere there's a real risk of ignition from the tools or process involved, an insurer is likely to treat it as hot work and apply the exclusion accordingly.
Why do insurers carve hot work out of standard cover?
Welding and cutting carry a genuine fire and explosion risk. Insurers price and word cover around that risk rather than treat it like any other trade activity. Making the cover conditional on compliant work is how insurers manage that exposure, rather than declining to cover welding businesses at all.
What happens if a fire starts during welding work?
This is where the exclusion is actually tested. If a fire breaks out during or shortly after hot work and spreads to damage the site or a neighbouring property, whether liability cover responds generally comes down to whether the work was being carried out compliantly at the time, not just whether a policy was in place.
Does the hot work exclusion apply to property and business pack cover too?
Yes. The hot work exclusion is common on both liability and property cover, including the property section of a business pack, since a welding fire can damage the workshop or site itself as well as a neighbouring property. The same compliance question applies either way.
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Jack O'Hagan
Co-Founder & Insurance Broker
Jack spent 6+ years across law, finance and insurance, seeing the impact insurance can have on the growth of a business. With a strong focus on advocacy, he firmly believes insurance broking does not stop after the policy has been placed. It continues when a claim is lodged. He co-founded Cipher Insurance to help Australian businesses get the right broker experience.