Roofing Insurance: Costs And Coverage

According to the United States’ Census data released for the year 2021, about 970,000 single homes and almost 371,000 multifamily homes were constructed. This shows even at the height of the pandemic, housing demands soared, which incidentally increased the need for more roofing related jobs and contractors.

In construction, roofing is, unarguably, one of the most high-risk professions which demands the highest standards of safety precautions, as well as formidable insurance policies, in case the unforeseen happens. Height related accidents can be the most fatal, as roofers work practically with weights high off the ground level. The impact of a fall or trip can prove too serious, which is why roofing companies must get insured from potential risks.

To highlight the economic risks posed by roofing jobs related accidents, the U. S. Bureau of Labor Statistics, on its annual reports, stated that roofers suffered a fatality rate 10 times higher than the national average per year in 2018!

Of the about 5,333 fatal injuries recorded by the US Bureau of Labor National Census of Fatal Occupational Injuries in 2020, roofing contractors and employees accounted for a staggering 111 cases! That was a 15% increase from 96 in 2018.

These facts underscore the high-end risks attached to the roofing profession, of which companies are almost exclusively at the receiving ends. Experience has shown that high risk prone businesses have dodged the bullet [repeatedly] in full blown crisis, by having well structured, comprehensive roofing insurance. A bad roofing insurance policy is as good as not having any insurance. Many a business has been forced to incur out of pocket pay outs to settle lawsuits, accident or injury claims by workers or clients when insurance wasn’t good enough.

What is Roofing Insurance?

Every home you decide to purchase will not have a brand-new roof. So, it’s imperative that roofing maintenance and installation is carried out by competent companies with good reputation in the business. Clients feel comfortable, knowing they’re dealing with a roofing contractor with comprehensive roofing insurance.

Roofing insurance protects one’s roofing business in case of unanticipated risks such as injuries to workers or third parties, property damage, legal fees from lawsuit or libel claims. Imagine having to hand out a huge sum of your hard-earned savings to settle an injury claim through a lawsuit with little to no indemnity?? You’d be unfair to yourself and others who depend on your company.

What Does Roofing Insurance Cover?

One of the best steps to getting proper insurance is knowing which type of insurance provides coverage for risks and saves money. Having a good knowledge of roofing insurance helps clear out about half of one’s skepticism and builds confidence choosing the right plan for one’s company.

There are different types of roofing insurance, of which are;

  • General Liability Insurance: which protects roofing companies against third party general liability claims such as lawsuits, injuries or damages. This also protects one’s roofing business from claims by clients regarding services rendered.
  • Loss of Income Insurance: compensates one’s roofing business from forceful closure by court injunctions from claims by clients or workers. This compensation spans the period of business closure and could last up to a year.
  • Commercial Property Insurance: indemnifies against the company’s loss through property or equipment damage. Accidents such as fire outbreak, power surge, damaged tools are covered under the equipment insurance.
  • Workers Compensation Insurance: covers for the risk of injury sustained by a good worker at a job site. Medical bills and rehabilitation expenses are taken care of by this insurance policy.  Lost wages are also paid by this insurance, and so are death benefits in case of tragic incidents such as life loss.
  • Builders Risk Insurance: covers a property where building and roofing work is ongoing.
  • Commercial Auto Insurance: covers all roofing companies’ automobiles such as buses, vans, heavy-duty trucks in case of accidents and personal injuries to drivers, operators or third parties.

Why is Roofing Insurance Challenging?

Getting roofing insurance for your business can be challenging. Most insurance policies are expensive, and small scaled roofing contractors may not afford the premiums. In a bid to save costs, many roofing contractors opt for poor performing insurers, with weak financial strength to protect against risks.

Another reason why roofing insurance is challenging is getting an experienced independent agent who knows about which insurance policy is best for one’s business. Most insurance companies interphase with clients, mostly through agents.

An agent is at liberty to interphase for as many insurers as possible. Roofers need to take their time to carry out their due diligence on the type of insurance they’re purchasing and to get an upright insurance agent.

The risk associated with the roofing business is high. Owing to this, there’s considerable complexity in the terms of the insurance. Roofing insurance is more like a contract, with difficult stipulations and conditions set out.

A good insurance may prove too demanding in its requirements and applications for broad-based security against considerable risk. There could be more paperwork and legal obligations on the part of the roofing company to be fulfilled. This could wear off interest in seeking a good insurance plan for businesses.

Yet, these challenges aren’t worth taking the risk of purchasing a low-performing insurance or forsaking insurance altogether. It’s far more dangerous to fail to plan for the worst while hoping for the best! If you want your business protected, ask us which type of insurance is best for your roofing business, consult an experienced insurance agent at Contractors Liability. Moreover, we specialize in insurance for the construction industry. We will also give you a free quote in just 5-minutes. 

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