Roofing is considered a high-risk profession where a fall from a ladder or a lawsuit from a homeowner could cause a financial burden. Whether you’re are an independent contractor or with a team, protect your business from financial losses with roofing contractor insurance. We’ve evaluated the best business insurance providers based on coverage, financial stability, customer satisfaction, and overall quality.
Coverwallet began its journey in New York City in 2015 operating under the
Aon Insurance banner. At Coverwallet, you can access everything you need to
keep your company well-protected at an unbeatable price.
With a 100-year history of insuring businesses, Hiscox is well-known across
America and globally. With more than 500,000 small business customers,
Hiscox is fully aware and trained in the unique risks a business can face.
Thimble provides business insurance that can be tailored to your business by
the year, month, day, or even the job. At Thimble, the process to getting
the right business insurance is simple, scalable, and flexible.
Roofing insurance is a set of policies that financially protects contractors and their employees against accidents, lawsuits, damages, and individual medical costs. If a roofing contractor is prepared with a sufficient policy, they can avoid massive financial obligations that can arise from accidents in the workplace.
Who needs roofing contractor insurance?
Roofing contractors need roofing insurance since they are involved in a high-risk industry which can sometimes lead to accidents, both to people and property. Since it is such a high-risk occupation, a good insurance policy can help cover costs that could put roofing contractors out of business if they had to pay them out of pocket.
Regardless of whether you run a team of roofers or are an independent contractor, it’s advisable to consider roofing insurance.
What insurance do roofers need?
There are a variety of different types of insurances that you can carry for different risks you want covered. The amount of layers of protection is up to the business owner:
General liability insurance
This covers roofing companies against lawsuits, accidents, and damages, which can be caused by equipment breakdowns, natural calamities, employee negligence, and unforeseen events. Generally, this is divided into three common components:
Bodily injury: A third party is injured due to you or your employee’s negligence. For example, while on the job, an employee drops a tool that slides down the roof and falls on the client’s head, which causes a concussion. The client then files a claim against your business.
Property damage: The property of a third party is damaged due to you or your employee’s negligence. For example, when removing a old roof, your new employee uses a saw and cuts a supporting beam causing that section of the roof to collapse and the client files a claim against your business.
Personal injury: A third party suffers injury other than bodily injury such as emotional, mental, damage to their reputation, etc. For example, if your employee is aggressive and berates the client and causes them to panic, your client may file a claim for emotional injury.
Workers compensation insurance
This type of policy pays for medical costs and expenses for injuries and/or sicknesses incurred by employees while on the job. Since roofing is a high-risk occupation, workers’ compensation insurance usually runs a higher premium than other trade insurance policies. Also, worker’s compensation is mandatory in certain states.
Professional liability insurance
Also known as errors and omissions insurance, it helps protect roofing contractors in the event that their work causes bodily injury, property damage, or if a client deems it unsatisfactory.
Commercial auto insurance
If an auto accident occurs while on the job, this type of insurance can help cover the costs. It covers medical costs and property damage, along with any other financial loss relating to vandalism, theft, or weather damage.
Light vehicles: Sedans, small trucks, vans, SUVs, and other smaller vehicles.
Heavy vehicles: Equipment trucks, dump trucks, etc.
Trailers: Utility trailers, container trailers, etc.
Contractors tools insurance
If tools are damaged, stolen, or lost, this policy helps cover the costs necessary to repair or replace them.
What are the limits of roofing contractor insurance?
The standard limit for electricians insurance is $1M per occurrence and $2M in aggregate limit. The next tier up in limits for a policy is usually $2M per occurrence and $4M in aggregate limit. If you feel like you need a higher limit, you can talk with your current or potential new insurance provider for a customized policy.
How much does roofing contractor insurance cost?
There are several factors that affect the cost of roofing insurance premiums. Here are some of the factors that have a significant impact on premiums:
Number of employees: With a higher number of employees working, the risk of an accident happening is higher. This means that the policy premium will be adjusted accordingly to account for the higher risk.
Deductibles: Higher deductibles means that you will pay more out of pocket if something were to happen, so the premium will be lower. Conversely, if you have a lower deductible, your premium will be higher.
Location: If your business is located and operated in a high risk area, the premium will usually be higher than if you operate in a safer area.
Per occurrence and aggregate limits: Purchasing an insurance policy with higher limits will raise the premium.
Years in business: Generally, the more a roofing contractor is in business, the lower the premium will be in this category. More experience statistically means less claims.
Number of claims on file: If you have a lot of claims on file, it shows the insurance company that you are a high risk business, and the premium will be higher to account for the risk they are taking to insure you.
A roofing contractor will generally pay between $930-$1,670 annually for roofing general liability insurance.
How to choose the best roofing contractor insurance?
There are several things you should consider when selecting a policy and provider. Here are a few questions that you can ask yourself to see whether your needs are being met by your provider:
Coverage limits: If you are planning to buy roofing contractor insurance, you may not want to overlook the minimum and maximum amounts of coverage. This will give you a clear idea of your coverage, keeping last-minute financial shocks aside.
Provision of online claims: Your roofing business deserves your attention, and during busy periods, you may not be available to personally visit the insurance provider for filing claims. To avoid such hassles, you may want to pick a provider that gives you the option of filing online claims.
Flexibility: The insurance provider should be dynamic and willing to adjust the policy as per your preferences. Let’s say you’ve purchased a new tool or equipment for your roofing business and immediately want to add it to your coverage, which provider would you like to select: the one who is resistant or laid-back, or the one who is ready to go an extra mile to meet your requirements.
