Business Insurance is designed to protect a business owner's financial assets and is an essential investment for a roofing company.
This article will cover the main insurance coverage for roofing companyes, general liability insurance, and suggest other policies that are suitable for this business.
Recommended: Use our dedicated small business insurance provider, Next Insurance, to get a quote now!
General Liability Insurance For Roofing Companies
All businesses, regardless of industry, face risks that should be covered by insurance. The most common and comprehensive type of policy business owners invest in is general liability insurance.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
While businesses aren’t legally required to carry general liability insurance, operating without it is extremely risky. If your business is sued, you could end up facing fees totaling hundreds of thousands of dollars (or more). Having a sufficient general liability insurance policy in place to help compensate for these damages is the only way to prevent this type of event from devastating your business.
Check out our review of the Best Small Insurance Companies.
Common Situations That General Liability Insurance May Cover For A Roofing Company
Example 1: While removing shingles and other existing roofing materials from a home or business in order to install a new roof, one of your roofers accidentally drops a piece of roofing material on a passerby, injuring them. Your general liability insurance may pay the expenses related to the injury claim. If the injury results in a lawsuit, your general liability insurance may help cover court costs and settlement fees or judgments related to the lawsuit.
Example 2: Your roofers failed to adequately lay down tarps in order to catch all the roofing materials, like shingles and nails. As a result, a visitor or occupant of the building stepped on a nail, resulting in a puncture wound that needed medical attention. General liability insurance may help pay for the treatment of the injury as well as any costs associated with a lawsuit.
Example 3: In order to get a closer look at the new roof, the building’s owner climbs a ladder and subsequently falls, resulting in many cuts and scrapes and possibly a broken bone. Your roofing company’s general liability insurance may pay the expenses related to treating the injury. If the injury results in a lawsuit being filed by the owner, insurance may pay all the court-related costs, lawyer fees, and any settlement amounts or judgments that arise.
Of course, this is not an exhaustive list of perils a general liability insurance policy will cover, and some conditions may result in a particular peril not being covered. It’s always best to talk to your agent in-depth about the specifics of your policy to avoid blind spots in coverage.
Learn more about the risks covered by general liability insurance.
Cost Of General Liability Insurance
The average roofing company in America spends between $500-$1,500 per year for $1 million in general liability coverage.
Check out the chart below for a snapshot of average general liability insurance expenditure across a variety of industries:
Several factors will determine the price of your policy. These include your:
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy. A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
Other Types Of Coverage Roofing Companies Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some other types of insurance all roofing companies should obtain:
Workers’ Compensation Insurance
Most states require businesses to carry workers’ compensation insurance for their part-time and full-time workers. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability or death benefits stemming from a workplace accident.
Commercial Property Insurance
You made a major investment in the tools, equipment, and supplies needed to run your roofing business. In the event of a fire, theft, or natural disaster, commercial property insurance would cover the cost of repairing or replacing your business-related property.
Types Of Coverage Some Roofing Companies May Need
In addition to the policies outlined above, there are a few other types of coverage your roofing company may require depending on certain aspects of your operations. Some of these might not apply to you, so be sure to ask your agent which policies are right for your business.
Commercial Auto Insurance
If you use trucks and other vehicles to transport your equipment and/or employees to job sites, you will need commercial auto insurance in order to cover any accident-related expenses if your work vehicle were to collide with another car or object while being driven.
Installation Coverage Insurance
Installation coverage insurance covers accidental damage to other items while the roof is being installed. For example, if one of your roofers drop a nail gun on a glass outdoor table and the glass is cracked, this insurance would pay for the repair or replacement of the outdoor table.
Commercial Umbrella Insurance
While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it should not be your frontline defense. Yes, insurance will compensate for your business’ financial losses after an incident occurs, but it’s much better to avoid losses altogether.
With this in mind, here are several things you can do to better protect your business:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up a limited liability company (LLC) or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Streamline your business’ internal processes. This will remove unnecessary variables from common tasks and create a safe, consistent environment for conducting business.
- If your business is an LLC, look into LLC Insurance.
Steps After Getting Business Insurance
Depending on where you are in your business building process, here are some other actions you may need to take before getting started:
- If you’re just starting, finding the best name for your business is a great first step. Check out TRUiC’s Business Name Generator.
- After finding the perfect name, get a logo with our Logo Generator.
- Every business needs a website. Using a website builder like the GoDaddy Website Builder or Wix makes building a website simple and fast! Check out our review of the Best Website Builder.
Business Insurance is the Best Way to Protect Your Business
If you're starting a new business, then you need business insurance. It's as simple as that. The protection offered by an LLC will protect your personal assets, but your business's assets are still open to liability in the case of a lawsuit or other loss.
Be sure that everything you've built is safe by getting business insurance.
FREQUENTLY ASKED QUESTIONS
What is included in a business owner’s policy?
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
What is the difference between business insurance and general liability insurance?
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
Do I need insurance before I start a business?
You should invest in insurance coverage for your business before your first interaction with a customer. Although the cost of insurance may seem high for a brand new business, it’s best to be proactive when it comes to protecting your assets. After all, you can’t buy insurance to cover a loss that has already occurred.
Will insurance protect my business from everything?
Not necessarily. Certain exceptions may be written directly into your policy, and some perils may be entirely uninsurable. Be sure to discuss the scope of your policy in-depth with your agent to avoid being blindsided by holes in your coverage.