The Most Important Insurance Policies According to Roofing Contractors

June 19, 2022

Roofing contractors need certain roofers’ insurance as protection against financial losses due to accidents. We review these insurance policies in this article. The roofing business comes with a high level of accident risks. Statistics have shown roofers die at almost twice the average rate for all construction workers (15.2). This is why a roofers’ insurance program is an essential concept for any roofing company and other contractors in the construction.

Beyond workplace injuries, third-party claims due to property damage or advertising injury are why business owners must carry the right insurance coverage to mitigate financial losses and possible bankruptcy. 

Thus, roofing contractors who certainly know the appropriate roofing insurance policies that work for their business will be able to carry out their business from any legal liability in case of a work-related injury or claim. 

Hence, we look at the roofing insurance every roofing company should have to protect the roofing contractors from the financial effects of unforeseen accidents. 

Roofing Contractors Insurance Policies Every Roofing Business Should Have

All types of experts from reputable construction companies have, over the years, stressed the need to have a certain kind of insurance before embarking on any project that involves machinery and labor. It reduces the financial burden on your own pocket if accidents happen. Roofers insurance helps take care of almost every damage your clients may have due to negligence. 

An appropriate roofing insurance policy offers different coverages. It covers legal fees for legal defense, workers’ compensation for injured employees, medical expenses or medical payments for personal injury, and other claims a roofing contractor can be held responsible for. 

A roofing insurance policy is an essential insurance need that covers the risks associated with a roofing project. Roofing is a dangerous job; most roofing contractors are prone to high job site injuries and sometimes property damage due to accidents. Hence, roofing insurance should be taken seriously. Roofing companies need an appropriate roofing insurance policy that offers the best coverage and saves money. 

Below are the essential roofing insurance policies business owners and roofing contractors need to carry to prevent possible bankruptcy due to claims from job site accidents:

1. General Liability Insurance Policy

General Liability Insurance is essential business insurance for roofing contractors and other contractors in the construction industry. General liability coverage covers third-party claims like property damage and bodily injury (personal injury). It covers medical bills and other required medical payments expected from a roofing contractor for third-party injury claims, including legal costs for legal defense and judgment. 

The general liability insurance can be bundled with commercial property insurance in a business owner’s policy (BOP) to save money. A roofing contractor that carries such roofing liability insurance is referred to as an additional insured. Although it’s not legally compulsory to carry general liability insurance, it’s extremely risky to operate without it. General liability insurance offers basic roofing insurance coverage every roofing business needs, and operations expansion can bring additional insurance needs. 

2. Builder’s Risk Insurance

It is another essential business insurance policy for roofing contractors. The roofing liability insurance covers every risk when a building is still under construction. It is also known as the Course of Construction or All Risk Insurance, and the   roofing insurance policy covers many incidents on the job site, including:

  • Acts of vandalism
  • Theft of materials and onsite tools and equipment
  • Fires
  • Floods
  • Storms, etc.

Unlike a General Liability policy, this roofing insurance coverage only remains valid for as long as the building is under construction. It’s not year-round liability insurance, and the insurance coverage is limited to the job site and not the roofing contractors. 

3. Professional Liability Insurance 

This business insurance covers negligence or mistake that your roofing business commits during a project. The roofing insurance covers advertising injury claims, commercial property damage, and legal fees due to third-party suits. Oversight is human nature and can’t be avoided in business. Thus, it’s essential to have this roofing contractor’s insurance. 

4. Workers Compensation Insurance

Most states require workers’ compensation insurance. It’s essential for roofing contractors to have insurance for businesses with part-time or full-time employees. The roofing insurance covers injured employees’ medical expenses due to injuries or sickness after a work-related accident. It covers medical bills, lost wages due to missed time at work, workplace-related disability or death benefits, etc. Taking care of injured employees’ medical bills and other related expenses from your own pocket can hugely affect your business. Hence, it’s essential to have workers’ compensation insurance.

5. Commercial Auto Insurance

Commercial auto insurance is another contractor’s insurance for businesses with work vehicles. The work vehicle may be personal but used for business. In such a situation, personal auto insurance offers the needed coverage. This roofing contractor’s insurance covers costs of damages or injuries as a result of an accident caused by the vehicle. Personal auto insurance also covers the damage caused to your personal vehicle used for business.

6. Surety Bonds

 A surety bond from a reputable insurance agency ensures utmost compliance of roofing contractors to the terms of their contract with a client. It is an agreement between a contractor (roofer), a client, and an insurance company that guarantees the insurance company will reimburse the client if a roofer fails to complete the expected contractual agreement stated in the contract. 

7. Umbrella Insurance 

The umbrella insurance policy is third-tier insurance coverage that ensures you don’t pay any legal fees or claims that exceed your primary policy from your pocket. It usually applies in cases where accidents and lawsuits that may exhaust the limits of your primary insurance coverage occur. General liability insurance policies can’t cover such claims. Hence, this contractor’s insurance offers you needed protection.

How much does roofing insurance cost? 

Roofing insurance costs vary with different insurers. Your insurance requirements and needed coverage affect costs from your side. Too many insurance requirements and coverage for your business can leave you with a higher premium. 

Nevertheless, you can always compare insurance quotes from different insurance carriers to get reasonable prices and the best coverage. Some of the factors that determine roofing insurance costs are:

  • Business location
  • Deductible
  • Number of employees
  • Claims history
  • Coverage options
  • Per-occurrence limit
  • General aggregate limit, etc.

Final words

As a roofing contractor or a construction business owner in general, it is important to protect your business from the various risks associated with the industry. General liability insurance policy, equipment insurance, and other contractors’ insurance that provide coverage for an injured employee, property damage, equipment loss, etc., reduce any problem your business faces. These roofing insurance cover larger percentages of the cost-implications of common risks.

Always reach out to professionals like ContractorsLiability.com to get proper guidance on the best general liability insurance policies for your roofing business. We work with reputable insurance companies that provide unlimited certificates and ensure your basic general liability needs are met satisfactorily. 


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