Roofing Contractor Insurance: Everything Contractors Need to Know

Roofing is one of the most dangerous jobs in the United States. There are many inherent risks involved, which is why contractors must really arm themselves with roofing contractor insurance to protect their business and their workers.

There are various types of insurance policies available for roofing contractors. If you are new to the roofing industry, it might be overwhelming to determine which one you should get for your business. You might even need clarification about the whole roofing insurance process in general.

To help you, we’ll discuss in this blog everything you need to know about roofing contractor insurance. This way, you’ll be guided on what kind of insurance policy should your roofing business have, how to get it, why it is essential, and how much it would cost you.

What is roofing contractor insurance?

Roofing contractor insurance is what protects your business from financial harm. It is made between your business and an insurance company to extend protection for your business, your business’ assets, your workers, and among others.

Your roofing business may avail of many types of insurance, and each will kick in only when specific scenarios happen.

For instance, if an employee gets injured while doing the roofing work, the worker’s compensation insurance will cover the medical expenses. If a company truck collides with another vehicle or structure, then commercial auto insurance will also cover the damage. Or if the customer’s property was damaged during the roofing, the general liability insurance will also cover the cost.

In short, insurance policies cover specific scenarios. You can purchase them separately, although they may also be available as a package or a bundle.

Why do roofing contractors need insurance?

Business protection

Accidents are common in roofing. Without roof contractor insurance, you may have to shoulder the medical expenses (in case of bodily harm) and costs of repairs (in case of property damage) out of pocket. If you’re unprepared, this financial blow can quickly drive you out of business.

Worker injury

Roofing is a dangerous job, so you need to be ready in case an employee is injured during the roofing work. If you have the necessary insurance, it will cover the medical expenses, loss of income, and even disability or death claims in case of fatal injuries. It is not your business that will shoulder the cost.

Liability for damage

An improperly installed roof may cause damage not just to the roof itself but the whole property in general. Extensive repairs or replacements could put a considerable dent in your business’ finances without roof contractor insurance.

Licensing and contract requirements

Although licensing requirements for roofing contractors vary per state, most will require insurance as part of the licensing and registration process. In addition, some localities may also require proof of insurance before you can start working on a property within their jurisdiction.

What kind of insurance should a roofing contractor have?

Roofing contractors may have some unique insurance needs depending on the type of clients they have and the services they provide. But here are some of the most common policies that every roofing contractor must consider getting:

Business Owner’s Policy (BOP)

This roofing contractor insurance is an excellent place to start for those who are just starting out in the roofing industry as it bundles three crucial coverage types, namely:

  • Business liability insurance – covers property damage and bodily injuries to non-employees.
  • Commercial property insurance – covers commercial space, including roofing tools and equipment.
  • Business interruption insurance – covers temporary work shutdowns due to natural calamities and emergencies.

General Liability Insurance

This roofing contractor insurance will cover third-party injuries you or your team may cause while working on a roof. Specifically, it will cover the following:

  • Property damage (clients)
  • Customer bodily injuries
  • Damage caused by faulty quality (even if the project has already been completed)
  • Slander, libel, and other advertising injuries

Worker’s Compensation Insurance

The safety of the workers should always be of utmost importance, which is why this roof contractor insurance is required in almost every state. It will cover work-related injuries sustained by workers, including medical bills, rehabilitation, lost wages, and disability and death benefits in case of fatal injuries.

Suppose the injured worker takes your business to court instead of accepting the worker’s compensation benefits. In that case, this insurance policy will also cover the defense costs and the potential worker’s compensation settlements.

Commercial Property Insurance

If your roofing business owns, leases, or rents commercial buildings such as storage facilities, garages, sheds, or offices, commercial property insurance will provide coverage in case of fire, accident, or other unforeseen circumstances that cause damage to the property.

Commercial Auto Insurance

You should consider getting commercial auto insurance if you use cars, trucks, or trailers in your roofing business. It will cover third-party injuries caused by the roofing contractor’s company vehicle during the transportation of equipment or its employees.

For instance, if someone is injured while your worker is operating a company vehicle for business purposes, this policy will shoulder the medical bills and the legal fees (if necessary).

In addition, it will also cover the repairs on your business’ vehicles damaged by theft, weather, or vandalism.

Contractor’s Tools and Equipment Insurance

This roofing business insurance covers repairing or replacing the tools and equipment used in roofing. For instance, shingle cutters, roofing knives, hammers, and other devices if they are lost, stolen, or damaged. It’s also called equipment floater insurance.

Professional Liability Insurance

This insurance policy will cover the legal costs when a contractor is sued by a third party for a mistake or oversight resulting in financial loss or damage. These can include accusations of negligence, undelivered services, and even failure to deliver the project on time.

Surety Bonds

This refers to the agreement between the roofing contractor, the client, and the insurance company. It guarantees that the insurer will reimburse the client if the contractor fails to fulfill the terms of their contract, such as incomplete work, poor quality, or delayed project completion.

What is not covered by roofing business insurance?

Not all scenarios caused by natural calamities or human-caused emergencies will be covered by roof contractor insurance. Damages caused by the following aren’t typically covered:

  • Earthquakes (needs separate earthquake insurance policy)
  • Floods (need a different flood insurance policy)
  • War
  • Radioactive fallouts
  • Government seizures
  • Intentional and fraudulent acts


So if your roofing tools, equipment, office, or even your roofing project are damaged through any of the instances enumerated above, it will not be covered by the roofing insurance. You will have to bear the cost out of pocket.

Roofing business insurance cost

The cost of roof contractor insurance varies depending on the coverage and term limits chosen. However, roofing business insurance is generally more expensive than other construction jobs mainly because they face higher risks due to the nature of the work.

In addition, other factors that also affect the cost include the following:

  • Location. Insurance per state and per city vary. For instance, roofing business insurance may cost more in Florida than in Pennsylvania.
  • The number of employees. The more employees your roofing business employs, the higher you will have to pay for the insurance policy.
  • The number of jobs taken annually. The more job a roofing contractor takes on, the higher the insurance premiums will be. This is because the more projects they have, the more exposed they are to risks.
  • Types of properties worked on. Larger and more expensive properties will require premium insurance compared to the usual average-priced residential properties.
  • Types of roofing work performed. The more complicated and risky the roofing work, the higher you will have to pay for the roofing business insurance.
  • The number of claims paid out in previous years. The more insurance claims are made in the previous years, the higher the insurance cost will be. 
  • Level of coverage you choose. There are various insurance policies, and the more coverage you choose, the higher you will have to pay.

How do I get roofing contractor insurance?

When purchasing a roofing insurance policy, it is always highly recommended to speak with an insurance agent or broker. They will act as an intermediary between you and the insurance company, so you can identify which insurance policies you’ll need.

You must submit an application and provide all the necessary information and documents. This can include business information, address, size, sales figures, and even claims history. Make sure to disclose all relevant details, as non-disclosure may affect the approval of your claims later on.

Once you’ve already submitted the information and documents required, it will then be reviewed by the insurance company. And taking all those into consideration, they will issue a policy for your roofing business.

Need help with what roofing contractor insurance?

Business 411 can help you identify which insurance policies you’ll need for your roofing business. We are a branding, marketing, and business development agency specializing in the roofing and home service industry. Book a call with us today!

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