Being a roofing contractor is no less than running a small business. You have to acquire clients, provide them with high-quality services, and take care of your expenses and sales. Similarly, roofing contractors also have to deal with risks of accidents, lawsuits, work mistakes, and property damages like other businesses. To handle these risks effectively, you can consider buying roofing insurance.
What is Roofing Business Insurance?
Each business benefits from a different set of insurance policies depending on the unique risks that it faces. Roofing contractors' insurance is a combination of insurance policies designed to protect roofing businesses from various business risks.
What Can Go Wrong?
Emergencies and unfortunate situations come unannounced at any time. Here is a glimpse into the major risks faced by roofing businesses.
Accidents
The risk of meeting accidents on the job is a major risk for roofing businesses. According to the Bureau of Labor Statistics, roofers have a fatal injury rate of 59 per 100,000 full-time workers in 2021. The profession had the third-highest fatal injury rate among the selected occupations. Roofing workers install, repair, and replace roofs on homes and buildings. The risk of falling off roofs or ladders is quite high. You or your workers could also get hurt while using tools like nail guns, hammers, or knives.
Property Damage
As a roofer, you need to work with the property belonging to third parties i.e. their roofs. While doing your job, you could accidentally damage the commercial or private roof that you are working on. As a business, you could be held liable to compensate for the damage by bearing its repairs or replacement cost.
Equipment Breakdown or Theft
A lot of roofing work hinges on various equipment and tools that you have to use. As a business, you have to invest a large amount of money into your work equipment. You need to drive the equipment and tools to the work site and have to use them there. This increases the risk of equipment breakage and theft. If your equipment breaks down or gets stolen, you may need to spend a hefty amount on its repairs or replacement.
Customer Complaints
Occasionally, you may fail to deliver the services of expected quality to your customers. For instance, the roof that you repaired starts leaking again within a week because of a mistake made by you while repairing it. In such cases, customers may accuse you of shoddy work and you may need to compensate them as your work caused them losses.
Business insurance for roofers: Recommended Policies
Here is a list of insurance policies that can help roofing businesses get sufficient coverage.
General Liability Insurance
This insurance policy can pay for third-party property damage claims, bodily injury claims, and personal injury claims. When the roofing contractor is found to be at fault, general liability insurance can cover the costs of looking into third-party claims and paying for damages.
It can cover the physical injuries to third parties brought on by your business or its personnel. This includes physical harm brought on by staff acts to clients or other individuals present at the employment site.
For instance, a client's family member gets hit by a tool that slipped from a worker's hand and fell down while repairing the roof. Your business could be liable to pay for their medical expenses and general liability insurance can cover the same.
Professional Liability Insurance
Professional liability insurance can be helpful for professions that require specialized skills and expertise like roofing contractors. If you cause your client to suffer financial loss as a result of errors, omissions, or negligence in the services given, this insurance can help cover the costs and damages associated with those incidents.
For instance, you fail to finish a roof repair job on time and the client's home gets damaged due to rain. The client may demand compensation for the losses incurred due to your professional negligence. This policy can pay for the legal fees for lawsuits related to the financial loss brought on by carelessness or professional errors.
Business Equipment Protection Insurance
As roofing businesses rely largely on their tools and equipment, this policy is a crucial component of roofing insurance. Commercial property insurance only applies to items that are physically present at the company's place of operation. However, a business equipment protection policy will secure your tools and equipment regardless of where you utilize them. For example, if your equipment breaks down while you are driving it to a client's home, a business equipment protection policy may be able to cover the damages. In most cases, it can pay for both replacement and repair costs.
However, this coverage might not compensate for harm brought on by rust, corrosion, or general wear and tear.
Workers' Compensation Insurance
The expenditures associated with occupational diseases and on-the-job injuries of employees are covered by a worker's compensation insurance policy. For instance, if a worker accidentally injures their hand while using a hammer, the business may be able to pay for their medical treatment.
A worker's compensation coverage can assist in paying for medical costs associated with treating employee injuries sustained at work. Wages lost when an employee is recovering from an illness or injury related to their job can also be covered by the policy.
Commercial Auto Insurance
If you use a car to bring your tools and equipment to the place of work, you could need business auto insurance. Practically every state, with the exception of New Hampshire and Virginia, requires that commercial vehicles carry this insurance.
This coverage might be able to cover the injured party's medical costs if they sustain a physical injury as a result of an accident involving the business's vehicle. In the event that you are injured in a car accident, it can also cover your own medical costs. When your work vehicle accidentally damages someone else's property, this coverage may cover both the cost of repairs and any associated legal costs. It may also pay for harm to your car brought on by collisions, bad weather, and vandalism.
Roofing Insurance Cost
The cost of roofing business insurance depends on a variety of factors such as
- The size of the business
- Annual revenue of the business
- Insurance policies selected
- Policy deductibles
- Number of employees on payroll
- The number of commercial vehicles used.
Protect Your Small Business With Roofing Insurance
Unfortunate situations like accidents, injuries, and legal battles lead to sudden large expenses and business interruptions. Attempt to minimize the financial impact of these risks by getting business insurance for roofers.
At Insurance Advisor, we offer a range of insurance plans to suit the needs of your business. We have a team of licensed insurance agents available to assist you if you are unsure about what coverage to choose. Additionally, you can browse our resources section to find business insights, practical advice, and recommendations.