There are more than 30.7 million small businesses in the country. If you are a contractor or own a small business, you already know and understand that a lot of effort goes into operating and managing a business. You also face many risks as a contractor or business owner.
Business insurance helps protect a business owner’s financial assets and employees, so it is a valuable investment for any company or contractor. As a small business owner, you face several risks (such as equipment damage) and are much better off insured than not. Regardless of industry, all businesses face many risks that should be covered by the right insurance.
As a professional roofer or contractor, it is indispensable to have contractors insurance or roofing contractors insurance to protect you, your company, and your employees from lawsuits, accidents, and especially employee injuries since it is a very dangerous job.
Keep in mind that, without insurance, you will have to pay for these incidents out of pocket, which will likely put financial stress on your small business. On the other hand, customers might only choose a roofing contractor with adequate insurance to cover them in case of accidents. The most comprehensive and common type of policy business owners and roofing contractors invest in is a general liability insurance policy.
What is Roofing Insurance?
There is no doubt that installing new roofs and repairing or maintaining damaged ones can be profitable work. However, this work comes with a considerable amount of risk that you cannot ignore. As a roofing contractor, you are often exposed to some of the riskiest work in the building and construction industry. And it is not just dangerous for your workers and employees but can also lead to huge damages if there is an issue and a leak develops.
Roofing insurance is essential as it helps protect roofers from many perils and risks they face. Roofing insurance is a specialized type of commercial insurance that meets roofers’ unique insurance needs and requirements. Roofing insurance helps protect roofing contractors from various costs and damages related to their services. You should know that most insurance policies are package policies and combine multiple individual coverages in a single, convenient policy that provides robust protection.
Roofing Insurance for Small Businesses: Issues and Importance
Insurance can be daunting and confusing for many business owners! It is something that you know you need; however, it is more complicated than purchasing furniture for your business or renting a space. For some business owners and roofing contractors, it can be difficult to see the value of purchasing insurance. This is because it is intangible and something you do not always use.
For other reasons, insurance is also a struggle for many of these companies and contractors. For example, the cost of roofing insurance can be pretty high compared to other insurance policies for construction businesses.
Also, the typical coverage can leave a lot to be desired. That’s mainly because of the inherent risks linked to the roofing business, particularly on the workers’ compensation side. Some of these risks include employees lifting heavy material and working at great heights, which can become huge medical bills if something goes wrong. Another key aspect of the roofing business that often makes it challenging to obtain quality roofing insurance is the use of subcontractors. However, don’t worry, as we are here to help you. Regardless of your specific situation, we can help you navigate it. Note that by getting roofing contractors insurance for your small business, you are purchasing protection. And this protection will be there if something bad happens to your business.
Why do you need Roofing Insurance?
Pitched roofs, flat roofs, and green roofs. Whether you are replacing the fascia or fixing a leak in the eaves, the overall quality or reliability of your roofing work speaks for itself – and so do your safety credentials. When you have roofers insurance, you have the confidence and peace of mind to complete the job right. Because you know you have taken steps to safeguard and secure your business, your employees, and your customers against the cost of things going wrong.
Most small businesses providing roofing installation or repair services should carry insurance to minimize their risks. This includes, but is not limited to, the following businesses:
- Commercial roofing companies
- Residential roofing companies
- Companies that specialize in slate, metal, or tile roofs
In many cases, businesses can have trouble securing jobs if they do not carry insurance. Many commercial customers and some homeowners will not hire uninsured roofing contractors. This is why contractor insurance is important.
Types of Roofing Insurance Coverage and Policies Your Small Business Needs
Here are a few common small business insurance types to consider for your roofing business.
Commercial General Liability
You may have heard of General Liability Insurance. It’s foundational coverage for roofing contractors and companies. This insurance protects your business from claims arising from bodily injury and property damage. Commercial general liability insurance covers basic third-party risks, like an individual injured by a dropped tool. However, keep in mind that general liability insurance doesn’t cover damages caused by defective materials, errors in installation, or recommendations and advice, as professional liability insurance does.
Professional Liability Coverage
This insurance may protect against errors made when providing advice or working on a roof. It also covers the legal costs associated with a suit if your client accuses you of not finishing the job or sloppy work, even if their accusation does not have merit. For instance, if a client claims that you did a poor job repairing a damaged roof, then this would help pay for your legal defense, judgments, and settlements.
Workers Compensation Insurance
You should know that workers’ compensation is required in almost every US state for roofing businesses, whether they have employees or not. Workers’ compensation covers disability benefits, medical expenses, and lost wages if your workers are injured or ill while doing job-related tasks. For instance, if your worker falls off a ladder, workers’ compensation would cover their lost wages and hospital bills while they recover from injury.
Installation Coverage Insurance
This is another important coverage. Installation coverage insurance covers any accidental damage to other items and objects while a roof is being installed. For instance, if your roofer drops a nail gun or other heavy object on an outdoor glass table and the glass is cracked, installation coverage insurance would pay for the replacement or repair of the outdoor table.
Surety Bonds
If you are bidding on a job and need a bond, this will help. Some jobs might require your roofing company to have a surety bond. Keep in mind that a surety bond is an important instrument that guarantees your roofing company will act within the terms and conditions of the contract.
Inland Marine
Inland Marine coverage protects equipment and supplies during transportation to and from various job sites and is essential for your business. This contractor’s insurance policy pays for the replacement or repair of roofing knives, shingle cutters, and other tools if they are stolen, lost, or damaged.
This policy protects your equipment while it is at job sites as well as in transit. You make huge investments in your equipment so make sure it is protected.
Commercial Auto Insurance
This insurance provides coverage for property damage and third-party injuries caused by roofing company vehicles and repairs to vehicles that are damaged by vandalism or weather.
Pollution Liability Insurance
Pollution risk isn’t just a concern for processing plants and large chemical manufacturers. Many small businesses – including roofing companies – are at risk of pollution liability claims as well.
Any business or company that uses chemicals that could be deemed unsafe for the environment must be protected with suitable pollution liability insurance. This insurance coverage protects your roofing company if you’re found at fault for an accident that leads to contamination of soil or water.
Umbrella or Excess Liability Insurance
This insurance policy gives your roofing business an added layer of protection. The coverage is often activated when the underlying limits of general liability insurance are reached.
Cost of Roofing Insurance Policies
Did you know that insurance companies usually base the rates of roofing policies on many factors? This is why the premiums roofers pay vary considerably. However, in most cases, you will find coverage at an affordable price and save on roofing insurance costs. Paying for an insurance policy is almost definitely more affordable than facing a huge disaster or lawsuit without any protection. It is worth noting that a roofing contractor who works alone will likely pay much less for roofers insurance than a business with many employees.
Here are some factors and variables that affect the cost of roofer’s insurance:
- The services you offer, such as commercial or residential roofing.
- Property and business equipment.
- Business revenue and size.
- Types of insurance policies purchased.
- Policy deductibles and limits.
If you want to save time and money, contracting an insurance broker to help you select the right insurance company and policies is highly recommended.
Final Thoughts
Roofing contractors and businesses have unique problems shared by a few construction trades. To save money and work properly, you have to stay on top of your coverage and closely monitor your subcontractor certificates of liability and experience modifier. It is best to discuss the matter with a knowledgeable insurance agent to see if a General Liability insurance policy is needed.
At ContractorsLiability.com, we want you to feel as though your liability insurance requirements are being met, providing attention to detail and always ready to take claims 24/7.
