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 roof 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 Roofing
As a roofing contractor, you can now expect to be asked to provide proof of insurance coverage. Roofing is not only dangerous but opens the door to any number of risk exposures in performing the work. Let’s review some of the risks and what is necessary for roofers insurance:
Roofers also face risks from electrocution if they’re working near powerlines or electrical. It’s more important than ever to make sure you protect your employees. OSHA shares some strategies to help you better protect your business and your contractors.
Roofing Contractor General Liability Insurance
General liability insurance is the first step in protecting your roofing contractors business.
If the homeowner walks outside to check your work and tools or equipment slide off the roof and injure the homeowner, you will be held liable for payment for their injuries. General liability often covers associated medical expenses. General liability coverage will cover the legal costs and if necessary, any awards of damage up to the policy limit.
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.
Say that you tarp a roof but wind lifts it and a leak develops causing interior damage, this coverage would cover that claim. Or perhaps a ladder falls and damages a car parked in the driveway or breaks a window, your general liability coverage would protect you.
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.
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.
Types Of Insurance Coverage For Roofing Contractors
This coverage is also referred to as ‘Errors and Omissions’ Insurance. If you provide faulty advice or consultation, or make a professional error in the course of installing or repairing a roof, this can protect you from lawsuits.
If you hire employees, you need to put workers' comp coverage in place. Should an employee get hurt, this protects them with replacing income and paying medical costs while helping protect you against a lawsuit by the employee.
Commercial Vehicle Policy
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.
Inland Marine Policy
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.
A 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 if the work you do is deemed insufficient or you’re unable to complete the project.
Business Owner’s 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.
General Contractor Insurance
If your business 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 roofing insurance can be more expensive than the cost for other industries. The average yearly cost 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 and make your coverage more affordable, make sure that you follow proper safety procedures to protect your subcontractors.
Get A FREE Quote Now
Don’t climb that ladder alone; use a licensed agent to help you determine your roofer's insurance coverage. Work with a professional to determine what business insurance makes the most sense and is affordable for your roofing contractor business. To get a competitive insurance quote it is fast and easy, enter your zip code and click “Get Quote.” One of our specialists will contact you soon.