Contract roofers face imminent dangers every day on the job, which means that having an insurance policy that is tailored to your needs and unexpected incidents is a non-negotiable. To protect your roofing business, equipment, employees, or vehicle, your policy should cover you for both liabilty, workers compensation, and a few others that may be overlooked.
After reading this article, you should feel confident in what policies are available for your roofing company and which ones make the most sense for you and your assets. It is important to be informed and well-versed on the roofing industry’s insurance practices so that you can protect you and your business against both common and uncommon accidents as well as unpredictable client behavior. The best way you can stay informed is by connecting with a reputable insurance agency who has direct experience with roofing companies.
Consider a Business Owners Insurance Policy
For roofing contractors and companies looking for general insurance to cover themselves, consider a Business Owners Policy (BOP). This is a fantastic way to go to save some money on insurance as this bundles three types of coverage into one. According to Forbes, the three types of coverage are business liability, commercial property, and business interruption insurance. The Forbes article goes on to break down what these types of insurance cover, including court costs, property damages, and lost income.
What is Business Liability Insurance?
To begin, business liability insurance covers bodily injuries and damages to property (remember, this doesn’t cover your workers as this would fall under general liability insurance).
What is Commercial Property Insurance?
Commercial property insurance covers the physical location of your business and the equipment held there (both leased and owned), such as tools, records, papers, technology, and furniture.
What is Business Interruption Insurance?
Lastly, business interruption insurance covers you when you have to shut down temporarily and you suffer a loss of income as well as damaged merchandise or a business move caused by incidents like a fire or theft.
Why Insurance for Roofing Contractors Matters
Contract roofers face imminent dangers every day on the job, making insurance a non-negotiable to protect themselves and their equipment or vehicle. Because their well-being is regularly put at risk, they need to make sure that if an accident does occur, they are insured for potentially high medical bills, emergency room visits, and worst case scenario, funeral costs if death occurs. While liability insurance and workers’ compensation insurance are common for roofing contractors, there are many other types of insurance to consider that could save you thousands of dollars and a bundle of stress.
Firstly, liability insurance is what covers any damage to your property during the building process. This ensures that the contractor is not responsible for paying out of pocket if something goes wrong, for example, a broken window or an electrical issue at the property. The other most common is worker’s compensation insurance, which is required in most US states, and is designed to cover medical expenses, disability benefits, or lost wages if the contractor cannot work due to illness. Now let’s take a look at other types of insurance that are recommended for roofers and cover a wide array of problems.
Roofers Should Consider These Types of Insurance
Commercial Auto Insurance
If you own a vehicle and use it for your business, such as transporting people, materials, and equipment or you conduct a business service with your vehicle like pick-ups and delivery, then you should consider commercial auto insurance for your roofing company. This is very different from your typical auto insurance and includes a handful of different types of insurance you should look into. Bodily injury liability, collision insurance, comprehensive insurance, and property damage liability are a few of the types that can protect you in a variety of situations.
Contractor’s Tools and Equipment Insurance
Also referred to as equipment floater insurance, this is important insurance for roofing contractors or businesses as it can help pay for repairs or total replacement of tools and equipment in the case that they are lost, stolen, or damaged. Typically, the items must be less than five years old.
Hired & Non-Owned Auto Insurance
As many roofing contractors use their vehicles for business, it can be a great idea for companies to look into this type of insurance. For employees using either a rental or personal vehicle for business, this covers property damage and injuries they have accidentally caused to others. For example, this would cover the damage to another person’s vehicle caused by your employee while they were driving a rented vehicle
Equipment Breakdown Insurance
If you are a roofing contractor and you find yourself in a situation where power surges, electrical shortages, mechanical breakdowns, or an operator error occurs, this insurance is incredibly helpful to protect the damages these incidents cause. Typically, technology is covered like a computer but not software. It is best to inquire about this with your insurance company.
Commercial Umbrella Insurance
For roofing companies looking for added coverage, consider commercial umbrella protection that goes beyond general liability insurance. This matters in the case of you being sued and your general liability doesn’t cover the entire cost. The umbrella insurance would cover the difference, potentially saving you hundreds of thousands of dollars. In addition, you will be covered for medical expenses, attorney fees, and damages when your company faces a lawsuit. This insurance is typically offered in conjunction with other liability coverages.
Errors and Omissions Insurance
Also known as professional liability insurance, this covers costs associated with a lawsuit if one of your roofing company’s clients accuses you of incomplete or unsatisfactory work. Some of the claims against you and your company could be negligence, errors in services given, omissions, or inaccurate advice. Even if they are falsely accusing you, you can face expenses associated with a legal defense and court fees while fighting the claim, which can be very costly and time-consuming.
What is Not Covered by Roofing Insurance
As a roofing company or contractor, it can feel overwhelming when considering the many types of insurance to best protect you or your business. As with many industries, there are some incidents that are never covered by insurance companies. These include but are not limited to, earthquakes and floods, (there are separate insurance policies for this), war, infectious diseases, government seizures, and wrongful termination. Regarding the latter, if you have employment practices liability insurance, you may be covered.
Clients Want Roofing Companies and Contractors who are Insured
Roofing companies and contractors operating without insurance are putting themselves at high risk as there are many work-related incidents that could happen. In addition to protecting you and your business, being insured will also help you secure more jobs. Potential clients are looking for roofing contractors who are protected so that they are not held responsible for accidents or negligence that happen on-site. Installing a new roof and responding to roof repairs is a serious and costly expense for people, so you can bet they are looking to invest in reputable and insured roofing companies and contractors.
Insurance Claims Process for Roofers
It’s not enough to have insurance these days. Competitive roofing companies are competent and informed when it comes to their business’s insurance policies. Developing a smooth relationship with your insurance company and understanding their process can mean fewer delays when it comes to processing a claim. After all, less time spent on the phone and more time on the roof means more money and happy clients, right?
When it comes to processing a roofing contractor or company insurance claim, it’s important to know the standards practices. Remember, that every claim is unique and will vary depending on the type of insurance you have and the type of damages. Typically, the process begins with an inspection by the adjuster sent by the insurance company and can answer any questions by the property owner as well as someone from the roofing business. The claim is then reviewed, evaluated, and the amount of the damage begins to be calculated. You may be contacted for inquiries from the insurance company as this process can be very tedious. The last step is to finalize the cost of the damages and begin the process of repairs or compensation, depending on the initial problem.
It’s an excellent idea to keep good records of your entire work history with a client as well as the expectations of the job, the materials used, hours worked, and other job-related reports. You will also want to review your insurance policies regularly to make sure that the coverage for your roofing company is current, so you stay competitive and put yourself in the best position for success.
Find the Right Insurance Provider for You and Your Roofing Business
When it comes to protecting your business and employees, consider the critical role that your insurance provider plays. Receiving personal guidance from your provider can make all the difference. They should be able to advise you based on your roofing businesses employees, vehicles, and value of assets including equipment and tools. They should also help you plan for the most unexpected incidents that can happen on the job, so that you are protected with the best coverage in case something does happen.
They will help you identify the amount of coverage you need based on your financial situation, potentially eliminating certain types of insurance while doubling down on others.
Discover Your Roofing Insurance Policy at Moody Insurance Agency
At Moody Insurance Agency, we tailor our services to you and your roofing company for the best insurance solutions for you. We are a family-owned business who has proudly been serving Colorado business and communities for 50 years. It is through our experience in the construction industry and dedication to our clients that we have been able to help thousands of clients with our products and services. Excellent customer service? Check. Best coverage and price for your business? Check.
For our expert guidance when deciding on the best insurance policy as a roofing company or contractor, contact our team or call us at (303) 824-6600.