How much does roofing contractor insurance cost?
Key roofing contractor insurance policies and their expected costs
Here are the top roofing business insurance policies and their average monthly costs:
- General liability insurance: $267 per month
- Business owner's policy (BOP): $105 per month
- Workers' compensation insurance: $226 per month
- Commercial auto insurance: $186 per month
- Contractor's tools and equipment insurance: $14 per month
- Professional liability insurance: $65 per month
- Commercial umbrella insurance: $86 per month
- Surety bonds: $8 per month
Our figures are based on the median policy cost for roofing contractors who request quotes through TechInsurance. The median provides a better estimate of your expected insurance rates because it excludes outlier high and low premiums.
General liability insurance for roofing contractors
Roofing companies spend an average of $267 per month, or $3,200 per year, for general liability insurance.
Although general liability is usually not required by law for roofers, this policy may be required in order to sign a lease, obtain a license in your state, or work with certain clients.
General liability coverage protects your roofing business from common third-party risks, such as customer property damage or bodily injury. It also covers copyright infringement, defamation, and other advertising injuries.
For example, an employee is working on a new roof and accidentally drops a shingle on a client, causing a head injury. This policy would cover their medical bills and any legal defense costs if the injured client decides to sue.
Most policies include product liability insurance, also called products-completed operations insurance, which covers harm caused by a defective product or a completed service.
Below is the average general liability policy for roofing contractors who buy from TechInsurance:
Premium: $267 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $1,000
General liability insurance costs are based on several factors, including the type of roofing projects you offer, policy limits, size and location of your business, and any subcontractors or additional insured endorsements you may have.
Business owner’s policy for roofing contractors
On average, construction businesses, including roofing businesses, pay $105 per month, or $1,256 per year, for a business owner's policy (BOP).
A BOP combines general liability and commercial property insurance coverage. This bundle typically offers a discount compared to purchasing each policy separately.
It protects your small roofing business against both property and liability risks, such as theft of business property, a fire at your office, or an accident that injures a client.
This is the average business owner's policy for construction businesses that buy from TechInsurance:
Premium: $105 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Roofing companies that qualify for a BOP are usually small and low-risk. Learn more about business owner's policy eligibility.
Many insurance companies allow policyholders to add business interruption insurance, also called business income insurance, to their business owner's policies as an endorsement.
Business interruption coverage pays for lost profits and day-to-day operating expenses if a fire, storm, or other incident forces your business to close temporarily.
The cost of a business owner's policy depends on the value of your business property and equipment, business size, location, policy limits, and revenue.
Workers’ compensation insurance for roofing contractors
Construction businesses, including roofers, spend an average of $226 per month, or $2,715 annually, for workers' compensation insurance.
Workers' comp coverage pays for medical costs and disability benefits when you or an employee suffers a work-related injury or illness.
For example, if an employee falls off a ladder while performing roofing work and sustains an injury, a workers' comp policy would pay for their emergency room visit, medications, and physical therapy.
Workers' compensation coverage usually includes employer's liability insurance, which pays for legal costs related to workplace injuries.
State laws often require roofers to get workers' comp as soon as they hire their first employee, but that's not always the case.
It's required in California and New York for every business with employees. In Florida, workers' comp is mandatory for every business with four or more employees, but it's also required for all construction companies, even if they have no employees. It's optional for most companies in Texas.
Some states require sole proprietors and independent contractors in the construction industry to obtain workers' comp even if they work alone. It's highly recommended in either case, since most health insurance plans can deny claims for work-related injuries.
The cost of workers' comp is based on several factors, primarily the number of employees you have and their occupational risks. Workers' comp is often less expensive for businesses in states that have lower healthcare costs.
Find workers' comp requirements in your state
Commercial auto insurance for roofing contractors
Construction professionals, including roofers, spend an average of $186 per month, or $2,226 per year, for commercial auto insurance. Most states require this type of insurance for businesses that own a vehicle.
If your roofing business vehicle is involved in an accident, a commercial auto policy can help cover damages, including medical expenses, property repairs, and legal fees. You can also buy comprehensive coverage to gain protection against theft, vandalism, and storm damage.
To protect personal, rented, and leased vehicles used for business purposes, you'd need hired and non-owned auto insurance (HNOA) instead.
The cost of commercial auto insurance depends on many factors, including your employees' driving records, your policy limits, the number of business vehicles you own, and the coverage options you choose.
Contractor’s tools and equipment insurance for roofing contractors
Construction businesses (including roofing businesses) pay an average of $14 per month, or $169 yearly, for contractor’s tools and equipment insurance.
Tools and equipment coverage is a type of inland marine insurance that covers roofing business property that's in transit, stored off-site, or used at jobsites.
This policy covers tools and equipment that are stolen, damaged, or destroyed, such as shingles, ladders, and other common roofing supplies.
This policy doesn't pay for normal wear and tear. It's designed to protect gear on the go, for items valued at $2,500 or less.
The cost of tools and equipment coverage depends mostly on the value of your tools and equipment, as well as whether you choose to insure them for their actual cash value (the value of the used item) or their replacement cost (the cost of a brand-new replacement).
Professional liability insurance for roofing contractors
On average, construction businesses and roofing contractors pay $65 per month, or $785 per year, for professional liability insurance.
Also called errors and omissions insurance (E&O), professional liability insurance covers financial losses related to mistakes, missed deadlines, and other instances of professional negligence. This includes attorney's fees and other legal expenses if a client decides to sue over unsatisfactory work.
For example, if a roofer demonstrates poor workmanship during a roof remodel, causing significant delays and repair costs, this policy would cover legal defense costs if the homeowner sues.
This is the average professional liability policy for contractors who purchase from TechInsurance:
Premium: $65 per month
Policy limits: $1 million per occurrence; $1 million aggregate
Deductible: $1,250
If you choose to purchase a combined policy of general liability and professional liability, you'll pay an average of $111 per month, or $1,330 per year.
The cost of professional liability insurance is determined by several factors, including the coverage limits and deductible you choose, the size of your roofing business, the type of roofing work you do, and your claims history.
Commercial umbrella insurance for roofing contractors
Construction businesses, including roofing companies and contractors, pay an average of $86 per month, or $1,035 yearly, for commercial umbrella insurance.
This policy helps increase the coverage of your underlying liability insurance, such as general liability, commercial auto, or employer's liability insurance. When your underlying policy reaches its limit on an insurance claim, an umbrella policy activates to provide any additional coverage needed.
Umbrella coverage is typically available in $1 million increments. You need to have another liability policy before you can buy this coverage.
The cost of commercial umbrella insurance for your roofing business depends mostly on the amount of coverage you buy. The same factors that affect the cost of the underlying policies can also influence your premium.
Surety bonds for roofing contractors
The average cost of a surety bond for construction businesses, including roofers, is $8 per month, or $100 annually.
Surety bonds protect your clients by providing reimbursement in the event that your business is unable to fulfill the terms of a contract or agreement. For this reason, you may be required to obtain a surety bond in order to sign a client contract.
Some states require roofing contractors to have a surety bond as part of their legal requirements for a contractor's license. The bond guarantees that your work will comply with building codes and other regulations.
As with a fidelity bond, the cost of a surety bond is a small percentage of the total bond amount. Unlike insurance, you'll need to repay the company that issued the bond in the event of a claim.
Top factors impacting roofing insurance costs
Several key factors impact the costs of insurance for roofing contractors, including:
- Types of roofing services offered: Roofing businesses that offer high-risk services, such as large-scale commercial projects, tend to have higher average costs than less risky types of work, like small residential projects.
- Number of employees and additional insureds: A larger workforce increases the risk of accidents, injuries, and lawsuits arising from interactions between employees and customers.
- Value of business equipment: Your commercial roofing equipment can impact your insurance, with more expensive property requiring higher coverage limits. For example, expensive heavy machinery will cost more to insure than more budget-friendly options.
- Types of insurance products purchased: Some policies, such as general liability insurance, are less expensive than other insurance options.
- Coverage limits and deductibles: How much insurance you purchase will impact your insurance costs. Higher deductibles and lower limits on your policies can help you save money.
- Claims history: Previous claims may signal policyholder risk to insurers, as businesses with a history of claims are more likely to file future claims.
- Business location: Businesses in areas with higher crime rates, more foot traffic, or greater exposure to severe weather often pay higher insurance rates.
- Business size and annual income: Larger businesses with higher annual revenue and more employees will generally pay more for insurance solutions than smaller businesses.
- Years of experience: The longer you and your roofing business have been in operation, the less of a risk you are to insure, and the lower your insurance premiums will tend to be, according to many insurance companies.
- Safety standards and regulations: Roofing companies with thorough risk management policies and practices often make fewer insurance claims, which keeps costs low. In some cases, roofers can receive discounted insurance rates for engaging in safe business practices.
There are some factors you can’t control when it comes to roofing business liability insurance costs, but you and your employees can still take meaningful steps to engage in risk management and reduce claims, which can help keep your insurance costs down.
How do I get affordable roofers' insurance with TechInsurance?
TechInsurance makes it easy for roofing contractors, general contractors, and other construction professionals to find the right insurance for their business in three easy steps:
- Fill out a free online application with details about your business.
- Compare roofing contractor insurance quotes from top-rated U.S. providers in real-time.
- Choose the best policies for your business and pay the premiums to begin coverage.
TechInsurance's licensed insurance agents are available to help answer questions about your risk profile, state insurance requirements, and how to find cheap roofing contractor insurance that matches your specific coverage needs.
Having the right coverage will give you peace of mind and financial protection against the unique risks of your profession.
Once you've bought the insurance policies you need, you can download a certificate of insurance. Small business owners can usually get proof of insurance within 24 hours of applying for quotes.
