Why do roofing contractors and businesses need insurance?
A fall from a ladder or a lawsuit from a homeowner could bankrupt your small roofing company. Shield your business with policies that help prevent financial losses and fulfill insurance requirements.
Get the right coverage
Insureon helps roofing businesses find quotes for policies that match their unique risks and keep them in compliance with local laws.
Get free advice from our licensed insurance agents and peace of mind knowing you have the right coverage.
What types of business insurance do roofers need?
These insurance policies provide the best coverage for common roofing risks.
General liability insurance
This policy covers basic third-party risks, such as a person injured by a dropped tool. Bundle it with commercial property insurance for savings in a business owner’s policy (BOP).
- Customer bodily injuries
- Liability coverage for leaks in a new roof
- Libel and other advertising injuries
Inland marine insurance
This policy helps pay for the repair or replacement of shingle cutters and other tools if they're lost, stolen, or damaged. It's also called tools and equipment insurance.
- Stolen tools
- Damaged equipment
- Any movable items brought to jobsites
Workers’ compensation insurance
Workers’ comp is required in almost every state for roofing businesses, whether or not they have employees. It helps cover work injury costs health insurance might deny.
- Work-related medical expenses
- Disability benefits and lost wages
- Employee injury lawsuits
Commercial auto insurance
This insurance covers third-party injuries and property damage caused by roofing company vehicles, as well as repairs to vehicles damaged by weather or vandalism.
- Legal fees from an auto accident
- Medical bills in the event of an accident
- Vehicle theft and vandalism
Business owner's policy
A BOP bundles general liability coverage and commercial property insurance for less that purchasing each policy individually. It's often the most cost-effective policy for roofing professionals.
- Accidents that injure clients
- Client property damage
- Damage to your building or its contents
Professional liability insurance
This policy covers legal costs when a roofing company is sued for a mistake or oversight. It's also called errors and omissions insurance (E&O).
- Accusations of negligence
- Failure to finish a project on time
- Undelivered services
How much does roofing insurance cost?
A roofing contractor who works alone will pay less for insurance than a small business with several employees.
Average roofing business insurance costs include:
- General liability: $317 per month
- Tools and equipment: $42 per month
- Workers' comp: $175 per month
A cost-effective insurance plan for roofers is a BOP. It bundles liability and property coverage for less than if they purchased the policies separately. For most Insureon construction customers, they pay an average of $125 per month for a BOP.
What factors affect roofing insurance costs?
Some of the key factors that affect roofing insurance premiums during underwriting include:
- Services offered: Residential roofing, commercial roofing, roof repairs, roof replacements, and gutter installation each involve different levels of risk. For example, larger commercial projects may involve more workers, higher property values, and greater liability exposures.
- Business equipment and property: The value of your tools, equipment, materials, and any owned or leased property can affect the cost of coverage. Businesses that rely on expensive equipment, such as lifts, trailers, or specialized roofing tools, may pay more for commercial property or inland marine insurance.
- Business size and revenue: Larger roofing businesses with higher annual revenue often pay more for insurance because they typically complete more jobs and have greater exposure to claims. A company that handles multiple projects at once may face more risk than a contractor working independently. Accurate project planning and construction cost estimating can also help contractors better manage project risks and expenses.
- Location: Insurance costs can vary based on where your business operates. Local labor costs, weather-related risks such as hurricanes or hailstorms, crime rates, and state insurance requirements can all influence your premiums.
- Policy limits and deductibles: Higher coverage limits provide greater financial protection but generally result in higher premiums. Choosing a higher deductible can reduce your premium because you'll pay more out of pocket if you file a claim.
- Number of employees: Businesses with more workers typically pay more for insurance, particularly workers' compensation coverage. Employee payroll, job duties, and the overall size of your workforce can all affect your rates.
- Risk management and safety practices: Roofing companies that prioritize workplace safety may qualify for lower insurance costs. Safety training programs, fall protection systems, equipment inspections, and written safety procedures can help reduce accidents and claims.
- Claims history: Insurers review your past claims when determining premiums. A history of filing claims may increase your rates, while a clean claims record can help demonstrate that your business presents a lower insurance risk.
How do I get roofers' insurance?
It’s easy to get insurance coverage and surety bonds as a roofing contractor or company if you have your business information on hand. Our insurance application will ask for a few basic facts about your business, such as revenue and number of employees. Many states require proof of insurance to issue a roofing license. You can buy a policy online and get a certificate of insurance (COI) with Insureon in three easy steps:
- Complete a free online application.
- Compare insurance quotes and choose policies.
- Pay for your policy and download a certificate.
Insureon's licensed agents work with top-rated U.S. insurers to find affordable coverage that fits your roofing business, whether you work independently or hire employees.
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FAQs about roofing contractor's insurance
Learn more about insurance requirements, licensing, and coverage options for roofing contractors.
Is general liability insurance required for roofing contractors?
In some states, general liability insurance is required by law for roofing contractors. It may be required by licensing boards, clients, property owners, general contractors, or project contracts.
A general liability policy provides crucial protection against third-party bodily injury, property damage, and advertising injury claims. Roofing professionals carry this coverage to pay for accidental harm caused by their business, such as a dropped tool that lands on a passerby or a parked vehicle.
General liability typically includes products-completed operations coverage, which pays for legal expenses and damages if a completed roofing project causes property damage or a bodily injury after the work is finished. For example, this policy would cover the cost of repairs if a roofing installation defect leads to a leak that damages a client's property.
This policy is sometimes referred to as public liability insurance.
Do roofing contractors have to be licensed?
Licensing requirements for roofing contractors vary by state and local jurisdiction.
Many states require roofers to hold a roofing contractor license or general contractor license before performing work above a certain project value. Some states may also require proof of insurance, bonding, or work experience as part of the licensing process.
Because requirements differ widely, contractors should check with their state's licensing authority before beginning any roofing projects.
Do I need roofing contractor insurance if I am a self-employed contractor?
Yes. Even if you operate as a sole proprietor, independent contractor, or subcontractor, roofing insurance can help protect your business from costly lawsuits, property damage claims, and workplace accidents.
Many self-employed roofers need proof of coverage to satisfy licensing requirements or secure contracts with homeowners, property managers, or general contractors.
Depending on your location, you may also be required to carry workers' compensation insurance, even if you're the only worker. For example, some states have specific workers' comp requirements for construction trades. Additionally, if you drive for business purposes, commercial auto or hired and non-owned auto insurance may also be required.
What other kind of insurance do you need for roofing?
In addition to general liability insurance, roofing professionals often purchase other policies to address property, equipment, employment, and operational risks, including:
- Commercial property insurance: Insures buildings your business owns, as well as permanently installed fixtures, against covered losses such as fire, theft, vandalism, and certain weather-related events. This coverage can help roofing businesses repair or replace damaged property and resume operations more quickly after a loss.
- Business personal property (BPP) insurance: Covers business-owned property such as nail guns, roofing materials, computers, office furniture, and other equipment used in daily operations. This coverage can help pay to repair or replace covered items damaged in a covered event, such as water damage from a burst pipe.
- Equipment breakdown insurance: Helps pay for the repair or replacement of covered equipment that stops working because of a mechanical, electrical, or pressure-system breakdown. This can be especially valuable for roofing businesses that rely on specialized equipment to complete projects on schedule.
- Installation floater insurance: Safeguards roofing materials, supplies, and equipment while they're in transit, temporarily stored, or being installed at a jobsite. This coverage can help protect against losses before a project is completed.
- Business interruption insurance: Helps replace lost income and pay ongoing expenses, such as rent, payroll, and loan payments, if a property claim forces your business to temporarily suspend operations. This coverage is also called business income insurance and is often included in a business owner's policy.
- Employment practices liability insurance (EPLI): Covers legal defense costs, settlements, and judgments related to employment-related claims, such as discrimination, harassment, wrongful termination, retaliation, or failure to promote.
- Hired and non-owned auto (HNOA) insurance: Provides liability coverage when employees use rented, leased, or personal vehicles for business purposes. For example, HNOA insurance may help cover injuries or damage if an employee causes an accident while picking up roofing materials or traveling between jobsites in a personal vehicle.
How can I find affordable roofing liability insurance?
The best way to find affordable roofing insurance is to review quotes from multiple insurance companies and choose coverage that best matches your business's budget and its specific risks. With Insureon, you can get free quotes from top-rated insurance companies by filling out our easy online application.
You may be able to lower your insurance costs by:
- Maintaining a strong safety program and fall prevention procedures
- Providing regular employee safety training to help avoid claims
- Choosing appropriate policy limits, endorsements, and exclusions
- Properly maintaining tools, equipment, and vehicles
- Leveraging new technologies, like AI tools to improve efficiencies and reduce errors
- Bundling policies when eligible
Simply put, roofing contractors can often reduce insurance costs by improving safety, minimizing claims, selecting appropriate coverage options, and comparing quotes from multiple insurers.
Our knowledgeable, licensed agents can help you find the best insurance solutions for your business needs, whether you take on minor roof repairs or large-scale commercial projects.
The average costs on this page were derived from our data on small business owners in the roofing field who purchased policies through Insureon. Most of our customers have less than five employees, annual revenue ranging from around $50,000 to more than $200,000, and five years or less in business.