The Basics Of Roofing Insurance
Being a roofing contractor can be a rewarding—yet demanding—profession. Whether you’re replacing damaged shingles after a storm or completing a roof for a new build, it’s a risky job. You need to make sure your contractors are well-protected if an accident or injury were to occur. If you're a roofing contractor in the market for business insurance, check out our comprehensive guide to choose the right type of insurance policy for your roofing business.
Statistics About the Roofing Business
As a roofing contractor, you can now expect to be asked to provide a certificate of insurance coverage. Why? Because roofing is dangerous for employees and opens the door to any number of risk exposures while performing the work. The statistics on injuries that roofers sustain aren't pretty:
Roofers also face risks from electrocution if they’re working near power or electrical lines. It’s more important than ever to make sure you protect your employees with roofers insurance. If you need resources, OSHA shares some strategies to help you better protect your business and your contractors.
What Should Insurance for Roofers Consist of?
General liability insurance is the first piece to include in your roofing insurance package. General liability insurance typically includes coverage for:
- Third-party bodily injury: If the homeowner walks outside to check your work and tools or equipment slide off the roof and injure the homeowner, your roofing company will be held liable for payment for their injuries. General liability coverage will cover the legal costs and if necessary, any awards of damage up to the policy limit.
- Medical Payments: Typically associated with bodily injury, this coverage will cover medical expenses associated with the injury, regardless of who’s at fault. It’s often referred to as a goodwill gesture to help avoid lawsuits.
- Property Damage: If you tarp a roof but wind lifts it off and a leak develops that causes interior property damage, general liability insurance covers that claim. If a ladder falls and damages a car parked in the driveway or breaks a window, your general liability coverage would protect you.
- Personal Injury: Let’s say you fail to supervise your contractors as they’re completing a roofing contract. The homeowner calls you to the property to point out that the job was completed insufficiently. General liability will help pay for the costs to redo the roof or pay another contractor to complete the job.
- Advertising Injury: This would come into play if you fail to live up to advertised prices or other claims you’ve made. Or, you make claims about a competitor that are false and they sue you for slander.
As you can see, general liability insurance is an important part of a roofers insurance package and goes a long way to provide the necessary protection your business needs.
Additional Insurance Coverage For Roofing Contractors
What other insurance policies should roofers including in their liability insurance package?
Professional Liability Insurance: This coverage is also referred to as Errors and Omissions Insurance. If you provide faulty advice during a consultation, or make a professional error in the course of installing or repairing a roof, this liability insurance can protect you from lawsuits.
Workers’ Compensation: If you hire employees, you need to put workers' comp coverage in place. Should an employee get hurt, this protects them by helping to replace their lost wages and paying medical costs. It also protects the business from a lawsuit brought by the employee. Workers compensation is required in most states.
Commercial Auto Insurance: If you or your employees utilize box trucks, cargo vans, flatbed trucks, etc. to transport tools and equipment or products and supplies, you need business coverage for those vehicles in case of an accident or collision in which property damage or third party injury occurs.
Inland Marine Insurance: Inland marine is also referred to as a ‘Tools and Equipment Floater’. This protects your tools and equipment if damage were to occur during transfer from jobsite to jobsite. It also covers your tools while they’re stored offsite at a jobsite. This coverage is necessary because a commercial auto insurance policy only covers tools or equipment that are permanently attached to the vehicle.
Construction Bond: A construction performance bond is a type of surety bond that some commercial roofing or government projects will expect you to provide. The surety company will cover expenses (until you can pay them back) if the work you do is deemed insufficient or you’re unable to complete the project.
Business Owners Policy: If your business has a showroom or storage facility you work from, you will need property insurance. Often, you can combine your business property insurance and general liability coverage into a policy known as a business owner’s policy, or BOP. A BOP often includes business interruption insurance, which can help offset the cost of lost profits if a business is damaged.
General Contractor Insurance: If your roofing company provides services other than roofing—or it isn't your primary business offering—consider looking at contractors liability insurance.
How Much Does Roofing Insurance Cost?
Because roofing contractors face significant risk of bodily injury, the cost of insurance for roofing can be more expensive than the cost for other industries. The average yearly cost of roofing insurance ranges anywhere from $2,000 to $5,000 annually, depending on the options you choose for your policy. Other variables insurance companies factor in include:
- Location/state your business is located in
- How many roofing contractors you employ
- The yearly revenue of your company
- Safety policies and procedures you have in place
- History of accidents/injuries associated with your business
To help reduce the costs of roofers insurance—and to make your coverage more affordable—make sure that you follow proper safety procedures to protect your subcontractors and your business.
Get A FREE Roofer Insurance Quote Now
Insurance for roofers doesn't have to be complicated if you use a licensed agent to help you determine the insurance coverage you need. You can work with a professional to determine what business insurance makes the most sense and is affordable for your roofing contractor business. If you'd like to work with one of our agents, complete the form at the top of the page or give us a call at 1-877-907-5267.
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