Roofing Contractors: Insurance Essentials

Roofing is a dangerous job, so it's important to ensure your roofing contractor has adequate insurance to cover any accidents or injuries that may occur. There are two primary types of insurance that roofing contractors should carry: general liability insurance and workers' compensation insurance.

General liability insurance protects both the business and its clients in the event of property damage or injuries to non-workers. It covers instances where roofers may accidentally damage property or cause injury to individuals who are not part of the roofing crew.

Workers' compensation insurance, on the other hand, is crucial for ensuring the safety of the roofing crew. It provides financial support and covers medical expenses for employees who suffer job-related illnesses or injuries. This type of insurance is required by law in almost every state, even if the roofing business doesn't have any employees.

Additionally, roofing contractors may also want to consider other types of insurance, such as commercial auto insurance, tool and equipment insurance, and professional liability insurance, to ensure they are protected from various risks associated with the roofing business.

General liability insurance

You can get general liability insurance by bundling it with commercial property insurance in a business owner's policy (BOP). This is often the most cost-effective type of insurance for roofing professionals.

Workers' compensation

Additionally, workers' compensation insurance offers protection to employers by covering the costs of employee injury lawsuits. Without this insurance, employers can be sued by injured employees, and they lose the legal protection of arguing that the employee's negligence caused the injury. It is worth noting that workers' compensation won't pay out if employees intentionally caused their injuries, were injured while intoxicated, or were injured outside of work.

The cost of workers' compensation insurance varies depending on factors such as the number of employees, the type of work, and the location of the business. Some states have specific requirements for roofing contractors, and it is important to ensure compliance with local laws.

Overall, workers' compensation insurance is a crucial aspect of roofing contractors' insurance, providing financial protection and peace of mind for both employers and employees in the event of work-related injuries or illnesses.

Commercial auto insurance

• Hauling tools and equipment in your vehicle
• Transporting goods or people for work purposes
• An employee driving your vehicle
• The vehicle is owned by your company
• The vehicle is solely used for work
• Using your vehicle to pick up and deliver roofing materials

There are several common types of commercial auto insurance coverage:

• Bodily injury liability: This covers injuries accidentally caused to others by you or your employee while driving.
• Property damage liability: This covers property damage accidentally caused to others by you or your employees while driving. For example, if you accidentally crash into your client's fence.
• Combined single limit (CSL): This combines one overall limit for bodily injury and property damage claims against you instead of separate limits for each.
• Collision insurance: This pays to repair or replace your vehicle if you or your employees get into a car accident.
• Comprehensive insurance: This pays to repair or replace your vehicle if it is stolen or damaged by events such as floods, fires, falling objects, or vandalism.
• Uninsured motorist (UM) coverage: This covers injuries to you and your passengers if you are hit by an uninsured driver or a driver with insufficient insurance to cover your medical expenses. In some states, UM coverage can also be purchased to cover damage to your car if it is hit by an uninsured driver.

Professional liability insurance

The NRCA-endorsed PROOF insurance program is one example of a professional liability insurance product specifically designed for roofing contractors. This program helps professional roofers who are excluded from traditional markets obtain reliable professional liability insurance. By having this coverage, roofing contractors can navigate legal and financial challenges with confidence, allowing them to focus on delivering quality craftsmanship.

In conclusion, professional liability insurance is a vital safeguard for roofing contractors, especially those offering diverse services. By having this coverage, roofing businesses can confidently navigate the challenges of their profession, knowing that they are protected from financial ruin in the event of a lawsuit.

Contractor's tools and equipment insurance

As a homeowner, it's important to hire a roofing contractor with the right insurance coverage to protect yourself from potential liability in the event of an accident or damage to your property. Roofing contractors should carry general liability insurance and workers' compensation insurance as a minimum. However, there are other types of insurance that roofing contractors may have to protect their business and employees.

Contractors Tools and Equipment Insurance:

Contractors tools and equipment insurance is a specialised type of insurance that covers the repair or replacement of a contractor's tools and equipment if they are lost, stolen, or damaged. This type of insurance is designed for construction and contracting companies that work at different job sites and travel with their equipment. It covers hand tools, power tools, machinery, and other equipment, providing reimbursement for stolen or damaged items. This includes employee tools and clothing, as well as leased or rented equipment.

This insurance is ideal for small businesses or independent contractors as it is affordable and covers items valued at under $10,000. The items covered must typically be less than five years old, and the policy does not cover general wear and tear.

Contractors tools and equipment insurance can be added to a Business Owner's Policy (BOP) or commercial property insurance policy, providing a cost-effective way to protect a roofing contractor's business equipment.

Other Types of Insurance for Roofing Contractors:

In addition to contractors tools and equipment insurance, roofing contractors may also consider the following types of insurance:

• General Liability Insurance: This covers basic third-party risks, such as injuries caused by a dropped tool, leaks in a new roof, and advertising injuries.
• Business Owner's Policy (BOP): A BOP combines general liability insurance and commercial property insurance at a discounted rate, providing coverage for customer injuries, client property damage, and stolen or damaged business property.
• Workers' Compensation Insurance: This insurance covers work-related medical expenses and employee injury lawsuits and is required in almost every state for roofing businesses, regardless of whether they have employees.
• Commercial Auto Insurance: This covers third-party injuries and property damage caused by company vehicles, as well as repairs to vehicles damaged by weather or vandalism.
• Professional Liability Insurance: Also known as errors and omissions insurance, this covers legal costs if the roofing company is sued for negligence, failure to complete a project, or undelivered services.

Having the appropriate insurance coverage is crucial for roofing contractors to protect their business, employees, and clients.

Frequently asked questions