Construction is undoubtedly one of the most dangerous professions in modern society, which is why insurance requirements in this field are often rather complex.
Roofing, in particular, is a high-risk occupation because roofing services do not have two feet on the ground when working. Therefore, the most dangerous aspect of roofing is having a worker or roofing contractor fall off the new roof or a ladder and injure.
According to the Bureau of Labor Statistics’ National Census of Fatal Occupation Injuries, roofing fatalities accounted for 96 of the 5,250 work-related fatal injuries in 2018. While the national average for fatal injuries per 100,000 full-time workers is 3.5, roofers have a rate of 51.5, which is astonishing.
While the high probability of bodily injuries is the most important reason to ensure your roofing company, there are additional hazards of property and equipment damage, among other things, that should be adequately protected.
Let’s take a closer look at the many sorts of business insurance coverage that a typical residential and commercial roofing company near you should consider.
Business Owners Policy
A business owner’s policy (BOP) is a must-have for roofing protection. While larger roofing companies will almost certainly need to purchase general liability, commercial property, and business interruption policies separately, smaller companies (typically those with fewer than 100 employees and less than $5 million in annual revenue) will be able to save money by bundling these three coverages into a BOP.
General liability coverage would cover local roofing company in the event of third-party physical injury on the job site, meaning if someone who isn’t an employee is hurt on the job. For instance, if one of your tools fell from the roof and wounded a passer-by, general liability insurance would assist cover all of the costs related to the damage.
Slander, libel, wrongful arrest, and other reputational rights of your business and yourself are all covered under general liability. It also covers client claims about services or products that your company promotes.
Damage to property and equipment is covered by commercial property insurance. This insurance coverage will safeguard your property and the things within it, whether you own or rent office buildings, storage facilities, or garages for your business. In addition, roofing contractors will frequently add a “tools and equipment floater” to their policy to cover any particular tools and equipment they may require for their operation, whether purchased or borrowed.
Finally, business interruption or loss of income insurance is frequently included in a BOP. It reimburses businesses if they have to close down and cannot work for whatever reason. It normally covers a year’s worth of lost income and operating expenditures.
Workers Compensation Insurance
Workers’ compensation insurance should be regarded as vital coverage when putting together a roofing insurance package because the safety of your employees is of the utmost importance in the roofing industry.
As we’ve already established, flat roofing is an extremely risky industry with a high fatality rate, which means you’ll probably have to spend a little more for a solid workers compensation policy than most other lower-risk enterprises.
If one of your employees is hurt on the job, your workers’ compensation insurance will cover all medical expenses, including rehabilitation. While your employees are healing and unable to work, workers’ compensation will pay their lost wages.
If a fatal injury happens, workers’ compensation will award disability and even death benefits in the event of a more catastrophic circumstance. It also covers you against workers’ compensation claims, including defense expenses and potential settlements, if your injured employee chooses to sue you rather than accept the workers’ compensation benefits you’ve provided.
Commercial Auto Insurance
If your roofing business requires the use of automobiles, trucks, vans, or trailers, you need to get commercial auto insurance. Because, even if you own these vehicles, personal auto insurance will not cover work-related damages.
Suppose someone is injured while operating a business vehicle. In that case, commercial auto insurance will cover damage to third-party vehicles as well as personal injury protection and medical costs for you and your employees. In addition, if you or your employees are involved in an accident in which a third party is hurt, it will also cover third-party physical injuries. Embroker will provide you with a quick commercial auto insurance quote in about 10 minutes.
Most business auto plans also include collision coverage, which pays for any damages to your vehicle in the event of an accident with another vehicle, and gap coverage, which pays for the remaining balance on a leased vehicle if it is seriously damaged and needs roof replacement.
Inland Marine Insurance
If the majority of your roofing company’s property and equipment is stored in a single place and you only work in one area, your BOP coverage should suffice. However, if you work in a number of different places and need to transfer a lot of your equipment and supplies from one site to another, you should consider purchasing inland marine insurance as well.
This coverage is critical for any insurance company that needs to send high-value equipment on a regular basis, such as computers, servers, laptops, networking equipment, or heavy construction equipment. In some cases, you can utilize inland marine insurance to safeguard someone else’s property that has been leased or loaned to you and is temporarily in your control.
Professional Liability Insurance
While this isn’t considered mandatory roofing insurance, it is required for some types of residential roofing and construction businesses. Suppose your roofing company, for example, often interacts with customers and makes suggestions on specific goods, materials, and treatments to use in maintaining and roof repairs. In that case, professional liability insurance may be required.
This coverage protects you in the event of a legal claim arising from any advice or recommendations you gave to a third party that resulted in a financial loss or harm.
Surety Bonds
Although surety bonds are not insurance policies, they give job guarantees and should be considered part of a comprehensive roofing insurance package.
When people or government agencies look for a full-service roofing contractor, they want to make sure they are dealing with a licensed, bonded, and insured company. This ensures that they are dealing with a company that takes its work seriously at all stages. A surety bond is essentially a legal contract between two parties that protects one party from financial damage if the other fails to complete the agreed-upon job.
Obtaining a bond is a lengthy process for roofers. A business plan describing the aim of the work to be done must be submitted. Financial assurances must also be provided, such as proof of credit availability and other financial documentation demonstrating that the project is well-funded and that the roofing company in question has a good reputation among contractors and subcontractors.
It’s always best to speak with a dedicated broker who deals specifically and expertly with construction and roofing and siding contractor and understands the risks of the industry and the resulting needs for coverage when it comes to securing bonds—whether you need bid, performance, payment, or any other type of bond.
Builders Risk Insurance
A property undergoing construction or renovation will be covered by a builder’s risk insurance. Buildings or other structures being built or refurbished will be covered under the policy if they are vandalized or damaged by fire or weather. It will also cover the project’s equipment and materials, both on the job site and in transportation.
Most owners will require that the project’s general contractor obtain this insurance and guarantee that all subcontractors are protected.
If you’d like to learn more about the types of insurance your licensed roofing contractor requires to be adequately protected, contact one of our knowledgeable brokers at any time.
Why Do Homeowners Care About Their Roofer’s General Liability Insurance?
Accidents do happen, and homeowners are aware of this. As a result, they prefer to engage with roofers who carry general liability insurance to cover the costs of such mishaps. Even if you don’t have general liability insurance, homeowners may be able to sue your company or you personally for these fees; however, if you can’t pay, they may have to use their own insurance or pay out of pocket. Because they don’t want to take that chance, homeowners may want confirmation of general liability insurance before accepting your services.
Conclusion
The sort of roofing contractor insurance you have and the level of coverage you impact how serious, professional, and committed you are to your customers. One of the most significant distinctions between a professional and a do-it-yourself roofer is the quantity of insurance the professional purchases. If you don’t have the right insurance, a homeowner may opt for a different roofing business.
Proper insurance can also allow your company to recover from mishaps and errors, such as employee injuries and any accidental property damage you may create. If you don’t have insurance, you could lose your company’s assets or perhaps your company itself if an accident occurs.
Every roofing company is distinct. Always talk to an expert about these three types of roofing contractor insurance so that you get the correct type and amount of coverage for your business. Contact us if you’re looking for the best roofing company that will cover and take care of all of your roofing needs! TCI Manhattan offers free roof inspection and has been doing roof repair and residential roof replacement for more than 20 years.
