Roofing Insurance Policy Information
Roofing Insurance. Roofing contractors install, repair, and re-roof residential and commercial structures. Installation of siding, gutters, or insulating material, or minor incidental repair of chimneys may be a part of the operation. Roofs may be flat or pitched, with the roof covering made of asphalt shingles, clay tiles, gravel, metal, slate or stone, sod, solar panels, thatch, or wood shingles. Typically, a roof consists of a decking, often made of wood or metal, on top of which the covering is installed.
Flat roofs may be "built up" from several layers of asphalt-laminated felt covered by asphalt and gravel. Hot tar or other adhesive may be used to join the roof covering to the decking. "Flashing" made of sheet metal is installed at corners and joints or around chimneys. Regardless of the covering, the roof should resist algae, hail, and wind damage, support the weight of ice and snow in colder climates and be watertight.
As a roofer or roofing contractor, you face numerous risks each day. Just one accident on a ladder or atop the roof of a client can lead to devastating injuries that might even cause you to lose your income. Roofing is a dangerous occupation. Around 29.9 deaths are reported per 100,000 full-time roofers, making it the fifth most dangerous construction jobs and two times the average rate of accidental death from all construction-related occupations. Around 50 roofers are fatally injured each year, mostly from fall-related injuries.
In addition, you are at risk of damaging clients' property or damaging your own equipment while you work on the job site. Further, if you have employees or hire subcontractors, you may find yourself facing liability due to their actions.
Roofing insurance protects your business from lawsuits with rates as low as $77/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked roofers insurance questions:
- What Is Roofing Insurance?
- How Much Does Roofing Insurance Cost?
- Why Do Roofers Need General Liability Insurance?
- What Other Insurance Types Should Roofers Consider?
- What Does Roofing Insurance Cover & Pay For?
What Is Roofing Insurance?
Roofing insurance is a type of insurance coverage that protects homeowners and building owners from financial losses that may result from damage to their roof or roofing systems.
This insurance can help pay for the costs of repairs, replacements, or rebuilding of the roof after damage caused by events such as fires, severe weather, theft, or vandalism. Roofing insurance policies can also provide coverage for roof leaks and other roofing issues, including the cost of fixing interior damage caused by roof leaks.
Some roofing insurance policies also offer liability coverage in case someone is injured on the property as a result of a roofing issue.
How Much Does Roofing Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small roofers ranges from $77 to $139 per month based on location, size, payroll, sales and experience.
Why Do Roofers Need General Liability?
A general liability insurance policy for roofing businesses usually has several components that protect the roofers from liability, including:
- Bodily injury coverage. This roofing insurance coverage type is essential for covering damages of people who are physically harmed at your business or if an employee causes injury on the jobsite to another non-employee.
- Commercial vehicle coverage. This coverage types is like a personal auto policy, but it protects your business' cars and other vehicles.
- Advertising injury coverage. This type of coverage protects your business from claims from customers due to services or products advertised by your business.
- Independent contractor's liability. This coverage type protects you from claims arising from the work of independent contractors that you employ.
- Medical payment coverage. This coverage type covers any medical expenses incurred when someone is injured on your business' property, and it pays regardless of fault.
What Other Insurance Types Should Roofers Consider?
Insurance for roofing contractors comes in several different iterations. The coverage that you need specifically depends on your roofing insurance business and whether or not you have employees or subcontractors working for you, either part-time or all year long.
In colder areas of the country, roofers may only work a partial period of the year, devoting the colder periods of the year to other types of work.
Because your business is as unique as you are, the coverage that you need for your portfolio of roofing insurance products should be customized to your needs. Some types of business insurance that roofers should consider include:
- Coverage for general liability. This handles claims for damages and injuries that result from mistakes or accidents while you or your employees perform plumbing services.
- Coverage for property. This covers damage to your tools or equipment.
- Coverage for income loss. This insurance kicks in and pays if your business experiences a work stoppage, so you can stay in business and keep moving forward.
These are not the only types of coverage that you need. You should also look for more extensive, broader coverage to completely ensure that you're protected from financial ruin. For instance, roofing contractors might want to add:
- BOP insurance. Business owner's policies, or BOP policies, combine the roofing insurance coverage types you need into one policy. Oftentimes, there are discounts available for bundling coverage. A BOP policy is ideal for small roofing businesses with revenue that is less than $5 million annually and with less than 100 people on staff. This roofing insurance policy combines a general liability policy with some other types of coverage. Typically, this includes property damage coverage and coverage for loss of income or business interruption. For self-employed roofers or roofers without payroll expenses or who do not lease or own the building in which they do business, a lower level of coverage may be suitable.
- General liability insurance. This type of insurance covers any third-party property damage and bodily injury to people who don't work for the business.
- Worker's compensation insurance. Worker's compensation insurance provides employees with benefits if they are involved in accidents on the job or become ill or die while working. There are state restrictions regarding worker's comp; business owners should check state labor board to determine whether or not they must purchase this insurance and the regulations surrounding its purchase.
- Professional liability insurance. If you regularly consult with clients or recommend specific products to customers, then you should purchase this type of insurance. This insurance protects your business from legal claims if your recommendations or advice cause the client to experience a loss or damage.
- Commercial vehicle insurance. All vehicles utilized in your roofing business should be covered under commercial vehicle insurance, including any cars, trucks, SUVs, vans, or trailers.
- Product liability insurance. Protect yourself from liability if you sell products as part of your roofing business.
Other Coverages For Roofers
In addition to the coverages mentioned above, some roofers may want to get a more extensive policy with riders that are purchased with a policy or as standalone policies. Roofers may consider tools-and-equipment floaters.
This can add on to the additional property damage coverage your business holds. This coverage covers owned or lease equipment or tools. Another option is inland-marine coverage. This coverage protects your equipment and tools in transit between jobsites.
Roofing Contractor's Risks & Exposures
Premises liability exposures at the contractor's office or shop are generally limited due to lack of public access. At the job site, tools, power cords, and scrap all pose trip hazards even when not in use. Roofing materials or tools and equipment dropped during operations may cause serious injury to occupants or passersby or serious property damage.
Wind or weather may damage the unfinished portion of the roof or the interior of the building during the installation process. Repair or installation using hot tar may be a fire hazard to the building being worked on or to neighboring structures. Roofing materials in the open may create an attractive nuisance hazard to children who enjoy climbing.
Completed operations liability exposures arise from collapse, leak, or wind damage to a roof that has not been installed or repaired properly. Gradual seepage of water can cause mold or rot within the structure itself. Quality control and experience are important issues to evaluate. Hazards may increase in the absence of proper record keeping of work orders and change orders, as well as inspection and signed approval of finished work by the customer.
Environmental impairment liability exposures are from the disposal of old roofing materials and the disposal of waste tar, asphalt, sealants, and adhesives due to the potential for contamination of air, ground, or water. Removal of asbestos tiles may be a concern; although the asbestos in tiles is typically non-friable, (it does not readily crumble and become airborne). Proper written procedures and documentation of both the transportation and disposal process are important.
Workers compensation exposure can be severe as work is done above ground. Workers can fall from roofs due to tripping or from sudden changes in the wind or weather. The exposure increases if the roofs are pitched rather than flat. They may also be injured by falling objects. Common hazards include back injuries from lifting, cuts and puncture wounds from trimming the flashing and other materials, foreign objects in the eye, and work with hand and power tools. The application of hot tar and asphalt can result in burns and eye, skin, and lung irritations.
Property exposure at the contractor's own location is generally limited to those of an office, shop, and storage of materials, equipment, and vehicles. Ignition sources include electrical wiring, heating, and air conditioning systems. Solvents, chemicals, or sealants used to install roofing may be flammable, requiring proper storage and separation from combustibles.
If repair work on owned vehicles and equipment is done in the building, fire hazards may be high due to the presence of oils, fuels, and other combustibles. When hot built-up roofing is done, any preparation work with hot tar and asphalt heated at the yard site increases the fire potential for both the insured and to neighboring properties. Equipment, materials, and supplies stored in the yard have higher exposures to wind, vandalism, and theft.
Crime exposure is from employee dishonesty. Background checks should be conducted prior to hiring any employee. All orders, billing, and disbursements must be handled as separate duties and annual external audits conducted.
Inland marine exposures include accounts receivable if the contractor bills customers for services, computers, contractors' tools, and equipment, goods in transit, installation floater, and valuable papers and records for clients' and suppliers' information. Contractors' equipment includes hoists, ladders, scaffolding and similar equipment that may be damaged during transport to or from the jobsite by collision or upset, or during setup or use. Building materials and tools may be damaged by dropping, weather conditions, or loss due to theft by third parties or employees.
Business Auto exposures are generally limited to transporting workers, equipment, and supplies to and from job sites. Loading and unloading hazards may be significant due to the weight of roofing materials. If hot tar or asphalt is used, overturn or collision during transport could result in damage to other vehicles. Clean up costs may be extensive. All drivers must have appropriate licenses and acceptable MVRs. Vehicles must be maintained and the records kept in a central location.
What Does Roofing Insurance Cover & Pay For?
Roofers may be sued for a variety of reasons, some of which include:
Property damage: Roofers may be sued for damages caused to the property they are working on. This can happen due to mistakes made during the installation or repair process, such as incorrectly installing flashing or shingles.
Insurance protection: Roofers can protect themselves from such claims by carrying general liability insurance, which covers property damage caused by their work.
Bodily injury: Roofers may be sued if someone is injured while they are working on a roof. This can happen if a roofer drops a tool or a piece of equipment, causing injury to someone below.
Insurance protection: Roofers can protect themselves from such claims by carrying general liability insurance, which covers bodily injury caused by their work.
Failure to meet building codes: Roofers may be sued if the roof they install or repair does not meet building codes. This can happen if the roofer fails to obtain the proper permits or does not install the roof according to local building codes.
Insurance protection: Roofers can protect themselves from such claims by carrying professional liability insurance, which covers errors or omissions made during the course of their work.
Breach of contract: Roofers may be sued if they breach a contract with a client. This can happen if the roofer does not complete the work on time or does not deliver the quality of work promised in the contract.
Insurance protection: Roofers can protect themselves from such claims by carrying professional liability insurance, which covers breach of contract claims.
Workers' compensation claims: Roofers may be sued by their employees if they are injured on the job and feel that their employer was at fault.
Insurance protection: Roofers can protect themselves from such claims by carrying workers' compensation insurance, which covers injuries sustained by employees on the job.
Overall, insurance is an essential tool for protecting roofers from the financial burden of lawsuits. By carrying the appropriate insurance policies, roofers can ensure that they are protected against a range of claims and that they are able to continue to operate their businesses in the face of legal challenges.
Commercial Insurance And Business Industry Classification
- SIC CODE: 1761 Roofing, Siding and Sheet Metal Work
- NAICS CODE: 238160 Roofing Contractors
- Suggested Workers Compensation Code(s): 5551 Roofing - All Kinds & Drivers
Description for 1761: Roofing, Siding and Sheet Metal Work
Division C: Construction | Major Group 17: Construction Special Trade Contractors | Industry Group 176: Roofing, Siding, And Sheet Metal Work
1761 Roofing, Siding and Sheet Metal Work: Special trade contractors primarily engaged in the installation of roofing, siding, and sheet metal work.
- Architectural sheet metal work-contractors
- Ceilings, metal: erection and repair-contractors
- Coppersmithing, in connection with construction work-contractors
- Downspout installation, metal-contractors
- Duct work, sheet metal-contractors
- Gutter installation, metal-contractors
- Roof spraying, painting, or coating-contractors
- Roofing work, including repairing-contractors
- Sheet metal work: except plumbing, heating, or
- Skylight installation-contractors
- Tinsmithing, in connection with construction work-contractors
Roofing Insurance - The Bottom Line
Always work with a qualified and reputable agent and company to obtain roofing insurance. A seasoned agent can help you understand the nuances and intricacies of roofing insurance in general and your needs specifically, so you get a policy that's right for your business.
Additional Resources For Construction Contractors Insurance
Learn about construction contractors insurance, including how much the premium costs and what is covered - and how business insurance can help protect your construction business from lawsuits.
- Blasting & Drilling Contractors
- Bridge Contractors
- Building Contractors
- Cable Layers
- Demolition Contractors
- Dock & Pier Contractors
- Dredging Contractors
- Foundation Layers
- General Contractors
- Road Contractors
- Sewer Contractors
- Steel Erection Contractors
- Surety Bonds
The construction industry is a high-risk industry that requires business insurance to protect against potential losses. There are several reasons why the construction industry needs business insurance:
Liability risks: Construction projects often involve working on other people's property, which can lead to potential liability risks if any damages or accidents occur. Liability insurance helps to protect against these risks by providing coverage for any legal fees or damages that may arise.
Property damage: Construction projects can also be at risk for property damage, whether it's the company's own equipment or tools, or the property being worked on. Commercial property insurance including inland marine helps to cover the cost of repairs or replacement of any damaged property.
Worker injuries: Construction is a physically demanding industry, and accidents and injuries are a common occurrence. Wrokers comp helps to cover the cost of medical treatment and lost wages for injured workers.
Financial losses: Construction projects can be disrupted by a variety of factors, such as weather, delays, or changes in scope. Business insurance helps to protect against financial losses that may occur as a result of these disruptions.
Overall, insurance is an essential component of the construction industry as it helps to protect against a range of potential risks and losses. Without it, companies in the construction industry would be vulnerable to financial ruin and may not be able to continue operating.
Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Surety Bonds, Accounts Receivable, Builders' Risk, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Umbrella Liability, Business Automobile Liability and Physical Damage, Hired and Nonowned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Contractors' Equipment, Goods in Transit, Installation Floater, Cyber Liability, Employment-related Practices Liability, Environmental Impairment Liability, Stop Gap Liability, Unmanned Aerial Vehicles (UAV) (Drones).