Roofing Contractor Business Insurance

The type of roofing work you and your employees do may entail additional insurance requirements and require more types of coverage.

A complete risk management plan for a roofing project might include:

• Builder's risk insurance: This policy (also called course of construction insurance) helps cover damage to a structure in progress and/or construction materials.
• Commercial property insurance: If your business has a storefront or garage where you keep your roofing equipment and supplies, you can protect your business property from theft, vandalism, or damage with a commercial property policy.
• Inland marine insurance: If you transport equipment and property to and from a jobsite, you will likely need inland marine insurance, because commercial property insurance only covers business property at a fixed location. Coverages include contractor's tools and equipment insurance and installation floater insurance for materials awaiting installation.
• Commercial umbrella insurance: When your underlying general liability, commercial auto, or employer's liability policy reaches the limit on a claim, umbrella insurance provides additional coverage.
• Surety bonds: You may need a surety bond in order to secure a client or government contract. Some states may also require a surety bond to obtain a roofing or contractor's license.

Roofing business requirements are typically established at the state, county, or city level.

• Licenses: Some state or city governments may require a state contractor's license for roofers to operate in their jurisdictions. For example, California, Florida, and Arizona all require a license.

• Permits: Construction permits are almost always required for roofing work, including roof replacements and structural changes. General contractors are often the point person for requesting a permit, though homeowners or property owners can apply as well.

• Bonds: Surety bonds are often required as part of the licensing process in many states or counties. However, even when they aren't required, many clients request that a roofer carry a bond to provide an extra level of insurance. A surety bond would protect the client financially if a roofer abandons the job or fails to finish the roofing work as agreed.

Check with your local laws and requirements before taking on any roofing projects to avoid noncompliance.

Many roofers are tempted to purchase short-term, project-based insurance policies that only cover specific jobs in order to save money.

However, you may want to consider continuous coverage options for the following reasons:

• You could be at risk of losing your license. Certain professional licenses require ongoing proof of insurance. You could risk losing your license if you cancel your policy. Getting your license back after losing it can be a hassle, and sometimes impossible.
• Insurance companies often increase their rates when you begin and end coverage. Insurers prefer consistency. If you discontinue your insurance coverage, they may choose not to provide future insurance or might charge more for a new policy.
• Claims-made policies only cover claims made while the policy is active. If you're sued for a completed project after you've canceled coverage, you won't be covered, even if you were insured while you did the work.

You will be paying for all business-related losses out-of-pocket if you don't have commercial insurance. That includes:

• Work-related vehicle accidents. Commercial auto insurance is often required when driving a company-owned vehicle. If you're driving personal, leased, or rented vehicles, you'll need a hired and non-owned auto insurance (HNOA) policy. Your personal auto policy will not cover any accidents that occur during work-related activities.
• Accidents and damages at your business location or home. Homeowner's insurance won't provide coverage if a client is injured at your garage or home, or if your roofing equipment is stolen. That's why you need general liability insurance and commercial property insurance, or the two together in a business owner's policy (BOP).
• Work-related injuries and medical expenses. Workers' compensation insurance is incredibly important, as personal health insurance won't cover bodily injuries that are related to your job. It's also required by law in most states, especially if you have employees or subcontractors.

Here are a few techniques to get cheap roofer insurance:

• Bundle policies for a discount. Small business owners can often bundle insurance policies, which brings a discount. The most popular option is a business owner's policy.

• Pick the right coverage for your needs. Having the best policies to protect you, your employees, your clients, and your equipment will help you save money and prevent you from paying medical bills or legal defense costs out-of-pocket.

• Reduce your risks. Roofing can be a high-risk occupation. Prioritizing safety and security for you and your employees will help your business avoid incidents and claims, which keeps your roofing insurance costs low.

• Pay the annual premium up front. Most insurance companies offer a discount when you pay the full annual premium instead of monthly installments.

• Customize your policies. You can choose lower limits or higher deductibles to lower your policy premiums, or opt out of expensive coverage options like comprehensive insurance.

With TechInsurance, you can speak to a licensed insurance agent who will help you pick the right policies for your needs.