Roofers have one of the most dangerous jobs in the U.S. The fatality rate per 100,000 roofers was 47.0 in 2020, according to the Bureau of Labor Statistics.

Accidents aren’t your only concern if you own a roofing business. You also have to worry about problems like lost income from work interruptions, damaged equipment and claims of shoddy workmanship.

That’s why you need a good roofing insurance policy. Think of roofing insurance as a small business insurance policy that’s customized to meet the unique risks that come with the job.

What Does Roofing Insurance Cover?

A roofing insurance policy has several types of small business insurance to cover a wide array of problems. These issues include workplace injuries, damage to your business property and lawsuits from clients who claim your work is poor or incomplete (even if the claim is without merit).

A good place to start is with a business owners policy (BOP). A BOP bundles three important coverage types, and it’s usually cheaper than buying each coverage type separately.

Here’s what is included in a BOP:

Business liability insurance

This covers property damage and bodily injuries caused to others (not including your workers). For example, if a customer trips over your work equipment and gets hurt, your general liability insurance would pay for medical expenses, court judgments, settlements and legal defense costs.

Commercial property insurance

This covers the physical location of your business and equipment if they’re damaged due to a covered problem like a fire. Both leased and owned equipment is covered by commercial property insurance, including tools, inventory, business records, valuable papers, computers and office furniture.

Business interruption insurance

If you have to temporarily shut down work because of a problem covered by your policy, such as a fire or theft, business interruption insurance replaces lost income. This also handles lost income due to damaged merchandise and the cost of moving your business to a new location on a temporary basis.

Other Small Business Insurance Types

While a BOP is a solid start to your roofing insurance policy, you will want to build upon it with additional coverage types. You can speak with your insurance agent to discuss the types of insurance that will meet your business needs.

Here are some common small business insurance types to consider:

Workers compensation insurance

Workers compensation insurance is required in most states, even if you have just one employee. It covers medical expenses, disability benefits and lost wages if your employees are injured or ill while performing job-related tasks.

For example, if your employee falls off a ladder, workers comp would cover their hospital bills and lost wages while they recover from injury.

Commercial auto insurance

You need commercial auto insurance if you use a vehicle for your roofing business, such as transporting shingles to a job site. Your personal car insurance won’t cover business use.

Here are some examples of business use:

• You haul tools and equipment in your vehicle
• You transport goods or people in your vehicle for work purposes
• Your employee drives your vehicle
• The vehicle is owned by your company
• Your vehicle is solely used for work
• You conduct a business service in your vehicle like picking up and delivering roofing materials

Here are common commercial auto insurance coverage types:

• Bodily injury liability. This covers injuries accidentally caused to others by you or your employee.
• Property damage liability. This covers property damage accidentally caused to others by you or your employees. For example, 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 two separate limits.
• 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’s stolen or damaged from problems like flood, fire, falling objects or vandalism.
• Uninsured motorist (UM) coverage. This covers injuries to you and your passengers if you’re hit by someone who doesn’t have car insurance or enough car insurance to cover your medical expenses. In some states, you can also buy UM to cover damage to your car if an uninsured driver hits it.

Hired & non-owned auto insurance

If you or your workers use a rented vehicle or personal vehicle for business use, this covers property damage, and injuries accidentally caused to others. For example, if your employee gets into a car accident while driving a rented vehicle to a job site, this would cover damages to the other driver’s car.

Contractor’s tools and equipment insurance

This covers the cost to repair and replace your tools and equipment if they’re damaged, lost or stolen. For example, if someone steals your air compressor from the job site. This coverage may have limitations. For example, Insureon limits this coverage to small tools, mobile equipment and equipment less than five years old. This protection is also called “equipment floater insurance.”

Equipment breakdown insurance

If you rely on certain types of tools and machinery to complete your roofing projects (such as an air compressor) this covers the cost to replace and repair your equipment due to unexpected breakdowns. It doesn’t cover normal wear and tear.

Errors and omissions insurance

This covers the costs associated with a lawsuit if a client accuses you of not completing the job or shoddy work, even if the accusation has no merit. For example, if a client accuses you of doing a poor job repairing a damaged roof, this would pay for your legal defense, settlements and judgments. Errors and omissions insurance is also known as professional liability insurance.

Commercial umbrella insurance

If you want an extra layer of protection beyond your general liability insurance, you may want to look into a commercial umbrella insurance policy. For example, if your roofing business gets sued for $1.2 million and your general liability limits are $1 million, umbrella insurance would cover the $200,000 shortfall.

Surety bond

You may be required to have a surety bond to get a permit or business license. A surety bond covers the costs of claims about incomplete and poor workmanship, in addition to fraud and theft.

For example, if your client believes your roofing work is poor or insufficient, the client may file a claim with the surety for the cost of hiring another roofing contractor to re-do and complete the work.

Examples of Roofing Insurance Claims

Here are some claims scenarios and the roofing insurance coverage type that would apply:

What’s Not Covered by Roofing Insurance

Common exclusions that aren’t typically covered by your roofing insurance include:

• Earthquakes (you will need a separate earthquake insurance policy)
• Floods (you will need a separate flood insurance policy)
• Infectious diseases
• War
• Radioactive fallouts
• Government seizures
• Intentional and fraudulent acts
• Wrongful termination (unless you have employment practices liability insurance)

How Much Does Roofing Insurance Cost?

The cost of your roofing insurance policy depends on several factors, including:

• Number of employees. You can expect higher workers compensation costs with more workers.
• Insurance coverage needs. The coverage types you buy and your policy limits factor into your premium costs. Generally, the more coverage you buy, the more you can expect to pay.
• Prior claims history. Your insurer will likely factor your previous business claims history into your rates.
• Other pricing factors. Your business assets, the amount of business property you own, your business location and the size of your payroll are examples of pricing factors that affect your rates.

Example of the cost of roofing insurance

Here’s an example of how much roofing insurance might cost. Your rates will vary depending on how much coverage you purchase and other pricing factors.

Ways to Save on Roofing Insurance

Here are some tips to save on roofing insurance:

• Buy a BOP. A business owners policy (BOP) is a way to save on three essential coverage types: general liability insurance, commercial property insurance and business interruption insurance. You usually pay more if you buy these coverage types separately.
• Classify your workers accurately. Make sure you have an accurate and detailed description of your workers’ duties and don’t have them perform duties outside of their classification. This can help you save on workers comp insurance. Your agent can help you classify your workers.
• Implement a safety program. You may be eligible for savings if your roofing business implements and documents an employee safety program.
• Join an industry or trade association. You may qualify for a group rate on workers compensation insurance by joining a trade association.
• Pay your premium upfront. You can often get a discount if you pay your roofing insurance premium annually rather than monthly.
• Increase your commercial car insurance deductible. Generally, you pay less for coverage when you have a higher deductible. The insurance deductible is the amount that gets deducted from an insurance claims check. Be sure you can cover a higher amount if you go this route.
• Compare roofing insurance quotes. Not all insurers price their roofing insurance policies the same, which is why it’s a good idea to get quotes from multiple small business insurers.

Roofing Insurance FAQ