Burning, Welding, Cutting, and Hot Operations: What Every Tradesperson Should Know About Insurance Warranties

By Jenny Holly Hansen | WBN News | October 7, 2025

When you’re on a job site, welding, cutting, or grinding is just part of the work. But when it comes to your business insurance, these same everyday activities can trigger one of the most commonly overlooked clauses in a commercial policy: the Burning, Welding, Cutting, and Hot Operations Warranty.

If you’ve never heard of it before, you’re not alone. Many tradespeople are surprised to learn that failing to follow the conditions in this clause can leave them uninsured — right when they need coverage the most.

Let’s break it down in plain language.

What Is a Hot Work Warranty?

Most business insurance policies contain a warranty (or sometimes a condition) that applies whenever you do hot work, which includes:

• Welding
• Cutting with torches
• Grinding that produces sparks
• Soldering or brazing
• Any other work involving an open flame or heat source

Essentially, if there’s a chance your tools can start a fire, it’s likely considered hot work.

The warranty sets out specific safety measures you must follow whenever you do this kind of work.

Common Conditions You Might See

While wording can vary between insurance companies, hot work warranties typically include things like:

• Having a fire extinguisher nearby — often within a specific distance.
• Appointing a fire watch — someone must monitor the area during and after the work for a set period (some insurers are okay with 1 hours and others require up to 12 hours. )
• Clearing combustible materials — moving flammable items or shielding them with fire-resistant covers.
• Checking concealed spaces — making sure sparks haven’t travelled into walls, ceilings, or gaps.

Even if these steps sound like common sense, the key point is this: if your policy lists them as a warranty and you don’t follow them, your coverage may not apply.

Why It Matters: A Real-World Example

Imagine you’re welding a bracket in a commercial building. Sparks travel into a wall cavity and smoulder for hours before igniting. By the time the fire is discovered, there’s $250,000 in damage.

If your insurance company investigates and finds that no fire watch was maintained or no permit was issued, they could deny the claim entirely. Even if you had coverage for fire damage, breaching a warranty can void that part of the policy for this incident.

In some cases, insurers might pay third parties (e.g., the building owner) and then come after you to recover the costs. That can be financially devastating.

How This Affects Your Ability to Work

For tradespeople, these warranties don’t just affect claims — they can affect your ability to take on jobs:

• Some policies may exclude coverage for hot work entirely unless you meet strict permit procedures.
• If you can’t meet the warranty requirements, you might be forced to decline certain jobs or risk working uninsured.
• In the worst-case scenario, repeated breaches could make it harder to get insurance coverage or lead to higher premiums.

Practical Tips to Stay Covered

Here’s how to keep your insurance working for you, not against you:

1. Read your policy (or ask your broker to explain the hot work warranty in plain language).
2. Set up a simple hot work procedure — even a basic permit and checklist can go a long way.
3. Train your crew so everyone understands the steps required.
4. Keep records — if you ever need to prove you followed the warranty, documentation is your best friend.
5. Talk to your broker if your work involves hot operations frequently; they may be able to customize your coverage or recommend a policy better suited to your trade.

Bottom Line

Hot work warranties aren’t there to make your life difficult — they’re designed to prevent fires and manage risk. But failing to understand them can leave you exposed. By putting a few simple procedures in place, you can protect your business, keep your insurance valid, and take on more work with confidence.

Let’s Keep Talking:

Jenny is a business insurance broker with Waypoint Insurance. With 19 years experience, she will well versed in the technical aspects of business coverages.

She can be reached at 604-3177 or jhansen@waypoint.ca   

Connect with Jenny on LinkedIn at https://www.linkedin.com/in/jenny-holly-hansen-365b691b/.  

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