Roofing insurance refers to a policy that protects roofing contractors and companies against financial loss.
A roofing company should consider different types of insurance, such as general liability or workers’ compensation policies.
Insurance is important for roofing companies because it covers expenses in case of work accidents, property damage, injuries, and other risks.
When choosing an insurance provider, roofing businesses should consider their needs, the provider’s financial stability, and the quality of its customer service.
Below, we’ll examine all these aspects in more detail so that you’ll be well-equipped to choose your insurance policy and provider by the end.
What is Roofing Insurance?
Roofing insurance is a policy roofing contractors can use to protect themselves from financial losses resulting from accidents, injuries, and other risks associated with their work.
Roofing insurance is particularly important given the high-risk nature of roofing work:
A study by Verisk estimates that U.S. roof claims exceeded $19 billion in 2021, making up about 30 percent of all property loss dollars.
Roof-related damage is responsible for an estimated 70-90 percent of total insured residential catastrophic losses in most years.
According to the Bureau of Labor Statistics, 20 percent of fatal work-related injuries in the U.S. in 2021 occurred in construction, and the leading cause of death was falls.
These statistics underscore the need for comprehensive roofing insurance to protect contractors and property owners.
Why Do Roofing Businesses Need Insurance?
Given the high-risk nature of the roofing profession, businesses need roofer insurance to comply with legal requirements, protect against high expenses, and protect key assets.
Liability for damage
Accidents happen, and even experienced roofers can unintentionally cause damage to a property.
Roofing insurance includes public liability insurance, which protects against claims for bodily injury or property damage caused to third parties.
For example, public liability insurance can cover the repair costs if a falling roofing tool damages a neighbor’s car or a roof leak damages a homeowner’s property.
Comply with legal requirements
Operating a roofing business without proper insurance can cause legal issues. Many jurisdictions have strict regulations requiring roofing contractors to carry specific types of insurance.
Depending on your location, you may require workers’ compensation insurance or commercial auto insurance.
Understand the specific insurance requirements in your area to avoid fines or even losing your license.
Attract and retain clients
Many homeowners and property owners prioritize working with contractors who carry insurance.
Proof of adequate insurance coverage can help you:
Build trust with clients who feel more confident in choosing an insured contractor
Gain an advantage over uninsured competitors
Reinforce your business’s image as a professional roofing company
When Matt and Lori Swanson, founders of Guardian Roofing, wanted to attract more clients and grow their roofing company, they turned to ServiceTitan.
By integrating advanced roofing software features, Guardian Roofing streamlined operations and reinforced its commitment to its “Customer for Life” motto.
“There is no way that we could have done that [tripling in size since 2015} without ServiceTitan,” Matt says.
Also, ServiceTitan has helped Guardian Roofing take control of its marketing efforts.
“If I were going to use one word to describe ServiceTitan, I would say dynamic. And that's simply because there are so many things that we can do with it from start to finish,” adds Matt.
“From making the phone ring with Marketing Pro, all the way to the project being done and making sure that our customer is happy.”
Lori, meanwhile, highlights the importance of using adequate technology when managing a roofing business:
“With technology…I think what took us 18 years is going to take someone five. Because you have real-time information, your KPIs, you can make quick decisions, you can pivot, you can see what marketing is working. If we would've had the same technology we have now [...] when we started, everything would've looked a lot different.”
Laing Roofing also manages relationships with its customers with the help of ServiceTitan. “ServiceTitan is (allowing us) to manage all that stuff in between— the annual inspections, providing recommendations, repairs, and maintenance throughout the year,” says Robert Maier, VP of Laing Roofing.
What Types of Insurance Do Roofing Businesses Need?
Before deciding which insurance policy to choose, let’s examine the different types of insurance available for roofing businesses.
General liability insurance
General liability coverage is a popular policy for roofers. It protects businesses from claims of bodily injury or property damage caused by their roofing operations.
With this type of insurance, you are covered for legal expenses, medical bills, and court settlements.
Workers’ compensation insurance
A workers’ compensation insurance policy covers injured employees' medical expenses and payroll costs on a roofing job site.
With this type of insurance, employees get medical care and compensation for lost wages in case of job injuries. Also, as an employer, you are protected from lawsuits.
Commercial auto insurance
Roofing service technicians usually drive to jobs in company vehicles, and if they get into a car accident, you might end up paying a lot for it.
You can protect your business vehicles with commercial auto insurance to avoid costly property damage and medical costs.
This insurance policy is mandatory in most states, and it can cover the following:
Vehicle theft and vandalism
Property damage in an accident
Medical bills for employees and third-party injury
Business Owner’s Policy (BOP)
As a roofing company, you can qualify for this type of insurance policy if:
You have fewer than 100 employees
Your annual revenue is less than $1 million
A BOP is a cost-effective way to combine several essential insurances in a bundle if you are eligible.
For example, with a BOP, you could get a commercial general liability policy to cover injury and damage caused during roofing jobs and commercial property insurance for office repairs.
What BOPs don’t cover:
Professional liability
Commercial auto insurance
Workers’ compensation
Other employee insurance
Professional liability insurance
Professional liability insurance protects against suits, settlements, and costly legal fees arising from unintentional errors.
Even the most experienced roofing technicians can make mistakes like faulty installations or accidentally damaging property.
The professional liability policy gives you adequate protection as long as these were genuine mistakes.
What this policy doesn’t cover:
Work performed by roofing subcontractors
Non-financial losses
Losses caused by intentional acts
Umbrella liability insurance
This type of insurance is a backup policy with extra coverage and protection.
For example, if a car accident results in expenses that exceed your auto insurance policy limits, umbrella insurance covers the remaining costs.
You can also use this policy to cover injury, property damage, or legal fees.
How Much Does Roofing Insurance Cost?
Roofing insurance can cost from $80 to $700 per month.
The cost of roofing contractor insurance depends on different factors, such as:
Location and service area size: Your insurance premium increases if you operate in an urban area with increased traffic and crime rates. The cost of insurance is directly proportional to the risk of accidents, theft, and property damage.
Claims history: Do you have a history of frequent or high-value claims? Insurance providers may view this as a higher risk, which increases policy costs.
Number of employees: Large roofing companies with many employees may be exposed to more risks, which increases their premiums. Small businesses with fewer employees or roofing contractors have less risk and cheaper premiums.
Type of roofing insurance: Depending on the specific types of insurance policies you choose, they will affect the overall cost. For example, choosing a business owner's policy might be cheaper than individual insurance as it combines several policies in one bundle.
Deductibles: Higher deductibles can lower your insurance premium, but they also mean you will pay more out of your own pocket if you need to file a claim.
These are the main factors affecting the prices of roofing insurance policies.
To get more exact estimations, you need to contact your insurance provider for tailored quotes.
How Do I Choose the Best Insurance Provider for My Roofing Business?
Before choosing your insurance program, you need to decide which insurance provider you will pick.
Although there’s no step-by-step process here, we have some tips that might help you choose the right insurance provider:
Get clear on your needs: The more clarity you have over your roofing company's needs when it comes to insurance, the better your chances of picking the right provider. Start by outlining your company’s size, services, and liability exposure. This outline will give you and your future insurance provider a clear idea of the type of policy you need.
Get external help: If this insurance provider hunt is too much for you, consider consulting an insurance agent. This agent should have experience with roofing policies to help you pick a provider with the best coverage and rates.
Compare various insurance quotes: You can also go the old-fashioned way and do your research. Search for roofing insurance providers online to check their offers and get free quotes based on your company details.
Assess customer service: How well does the insurance provider deal with customer queries? Look at customer reviews to evaluate how good their customer service is in case of emergency, policy management, or filing a claim.
Check financial stability: You can check the financial health of insurance companies through ratings from agencies like AM Best, Moody’s, or Standard & Poor’s.
The better their financial health, the more likely they are to be able to pay out business insurance claims when needed.
The Bottom Line
Roofing insurance may look like a significant expense, but we believe it’s more of a wise investment for every business.
It’s essential for protecting your roofing business from unexpected financial losses that can derail your company's financial health.
Partnering with a roofing software provider like ServiceTitan can further reduce your company’s risk exposure.
ServiceTitan is cloud-based software that helps roofing companies automate their daily operations, deliver quality customer service, and grow their business. The world's top roofing service contractors use ServiceTitan's tools to succeed.
ServiceTitan Software
ServiceTitan is a comprehensive software solution built specifically to help service companies streamline their operations, boost revenue, and substantially elevate the trajectory of their business. Our comprehensive, cloud-based platform is used by thousands of electrical, HVAC, plumbing, garage door, and chimney sweep shops across the country—and has increased their revenue by an average of 25% in just their first year with us.
