Roofer You Can Trust DCA License #2107837-DCA


Roofing Insurance: What Your Roofing Company in NY Should Know

Many roofing contractors struggle with obtaining insurance due to the high cost compared to other construction businesses, and the inadequate coverage offered by typical policies. This is mainly because of the various risks that are associated with roofing, chiefly on the workers’ comp side. These risks include employees working at great heights, lifting heavy materials, and the potential for faulty work to cause significant damage to a building.

Additionally, the frequent use of subcontractors in the roofing industry can make it challenging to secure quality insurance coverage.

Fortunately, we are here to assist you. Whatever your specific circumstances may be, we have compiled a guide to help you navigate this situation. In this post, we will share with you some tips to help you obtain the coverage you need while saving on premiums.

Why Do Homeowners Prefer an Insured Roofing Contractor?

Homeowners prefer hiring an insured roofer for several reasons. Firstly, insurance protects homeowners from potential financial losses if any accidents or damages occur during the roofing process. In the absence of insurance, homeowners may be held liable for any damages, which can result in significant financial burdens. Insured roofers, on the other hand, provide the homeowner with the assurance that any unforeseen damages or accidents will be covered by the insurance company.

Secondly, hiring an insured roofer also protects the homeowner from potential legal action. If an uninsured roofer is injured while working on the property, the homeowner may be held liable for any resulting medical bills or lost wages. An insured roofer, however, provides liability coverage that protects the homeowner from such legal action.

Thirdly, an insured roofer has the necessary credentials to work on a homeowner’s property. Insurance companies require roofing contractors to meet certain safety standards and undergo rigorous training before providing them with coverage. As a result, insured roofers are more likely to be experienced and knowledgeable about safety procedures, ensuring that the roofing process is completed safely and effectively.

Finally, hiring an insured roofer shows that the homeowner values safety and is committed to protecting their property. This can be reassuring for potential buyers if the homeowner decides to sell their property in the future. Overall, homeowners prefer hiring an insured roofer for the peace of mind that comes with knowing their property is in good hands.

Types of Insurance a Roofing Company Needs

Workers’ Compensation Insurance

Workers’ compensation insurance serves not only to protect employees but also to safeguard employers from the high costs of medical care for injured workers. This example serves to illustrate how workers’ compensation insurance works in general, but there are many variables to consider that may impact coverage. Consider that you have employed a team of roofers who are installing a new roof when one of them accidentally hits its head against the chimney. Although they appear fine, you decide to take them to the hospital to be sure.

At the hospital, the injured employee undergoes diagnostic scans and receives treatments and medications. They may also require time off from work to recover, and in some cases, physiotherapy may be necessary. Depending on the severity of the injury, you may be required to pay your employee’s wages while they recover and cover their medical expenses, which could result in a significant bill. Moreover, if the employee believes that you were negligent, they may sue you, adding to your legal fees and expenses.

However, most employees opt for workers’ compensation benefits instead. These benefits provide immediate coverage, whereas a lawsuit can take months to resolve and may result in no payout. By accepting workers’ compensation benefits, the employee gives up their right to sue you and waives their right to punitive damages. In this way, workers’ compensation insurance provides critical protection for employers and their assets, depending on their policy and the circumstances of the accident. Furthermore, workers’ compensation insurance protects customers, such as homeowners, as well.

Commercial General Liability Insurance

General liability insurance can be more variable than workers’ compensation, and the requirements and options for coverage can vary based on state or provincial laws or the policy of the chosen insurer. Therefore, it is essential to consult with an expert to ensure that the policy provides the coverage needed. Typically, a general liability insurance policy covers property damage, bodily injury, legal expenses, and advertising injury, such as slander against a competitor. However, it usually does not cover employee injuries, work vehicles, tools, errors, omissions, or punitive damages (depending on the state).

General liability insurance can provide coverage that workers’ compensation does not. For instance, if a less experienced employee of a roofing contractor accidentally steps on a skylight that has not been secured and falls through, injuring the homeowner and causing property damage, workers’ compensation insurance would cover the cost of the employee’s injuries, but not the customer’s medical bills or property damage.

In such a case, the contractor’s general liability coverage could pay for the cost of the customer’s broken skylight and medical bills. Additionally, if the customer sues the contractor, the general liability insurance would cover the legal expenses of the defense team.

Roofing subcontractors need to note that they may not be covered by the general liability insurance policy of the business that hired them, depending on the state or province in which they are operating and the specifics of the policy.

Commercial Auto Insurance

Commercial auto insurance is essential for any roofing company that uses vehicles in its daily operations. Commercial auto insurance provides coverage for accidents and other incidents that may occur while driving a company-owned or leased vehicle. It also offers protection against legal claims arising from accidents or damage caused by the company vehicle.

Roofing companies often transport heavy equipment, such as ladders, scaffolding, and roofing materials. These items can cause significant damage if they fall off a truck or are involved in an accident. Commercial auto insurance covers the cost of repairing or replacing equipment damaged in a collision or other incident.

In addition to equipment, commercial auto insurance also provides coverage for bodily injury and property damage caused by a company-owned or leased vehicle. If a roofing company vehicle is involved in an accident that results in bodily injury or property damage, the insurance company will cover the costs associated with the accident, including medical expenses and repair or replacement of the damaged property.

Another important aspect of commercial auto insurance for roofing companies is that it provides coverage for employees who may be injured in an accident while driving a company vehicle. This coverage includes medical expenses, lost wages, and rehabilitation costs, which can quickly add up in the event of a serious accident.

Overall, commercial auto insurance is a vital component of a roofing company’s risk management strategy. It protects the company, its employees, and its equipment, ensuring that the business can continue to operate even in the face of unexpected incidents and accidents.

Equipment Breakdown Insurance

Equipment breakdown insurance is important for roofing companies because they rely heavily on specialized equipment to perform their work. This equipment can be expensive and if it breaks down unexpectedly, it can cause significant financial loss to the company. With equipment breakdown insurance, the cost of repairing or replacing the equipment can be covered.

Roofing companies use a variety of equipment, such as cranes, hoists, compressors, and generators, which are all vulnerable to breakdowns. These breakdowns can occur due to a variety of reasons, including wear and tear, electrical or mechanical failure, or operator error. Regardless of the cause, the result can be costly repairs or replacement, as well as lost time and revenue.

Equipment breakdown insurance can provide coverage for these costs, including the cost of repairs or replacement of the equipment, lost income due to the equipment breakdown, and the cost of any additional expenses incurred as a result of the breakdown, such as renting replacement equipment.

Furthermore, equipment breakdown insurance can also cover other expenses, such as the cost of cleaning up any resulting damage, liability for injuries caused by the breakdown, and business interruption costs. Without this insurance coverage, roofing companies could face significant financial loss and disruption to their operations in the event of an equipment breakdown.

Surety Bonds

Surety bonds are financial agreements that guarantee that a contractor will fulfill their obligations under a contract. They are a type of insurance that protects the client if the contractor fails to complete the job or if the work is subpar. For roofing companies, surety bonds are particularly important because they work on large-scale projects that require substantial investment from clients. Surety bonds ensure that the client’s investment is protected, and they can be confident that the work will be completed to their satisfaction.

There are different types of surety bonds, but the most common for roofing companies are bid bonds, performance bonds, and payment bonds. Bid bonds are required during the bidding process and guarantee that the contractor will sign a contract and provide the necessary performance and payment bonds if they win the bid. Performance bonds make sure that the roofing contractor shall finish the project as per the terms defined in the contract. Payment bonds ensure that the contractor will pay their subcontractors, suppliers, and laborers, protecting them from non-payment and potential liens on the property.

In addition to protecting the client, surety bonds also benefit the roofing company. Having surety bonds in place can help the company win more bids and contracts, as they provide clients with the assurance that the company is financially stable and capable of completing the work. Surety bonds also encourage contractors to maintain high standards of workmanship, as failure to do so could result in claims against the bond, damaging the company’s reputation and ability to secure future contracts.

In conclusion, surety bonds are an essential component of the construction industry, providing protection and security for both clients and contractors. For roofing companies, surety bonds are necessary to build trust and confidence with clients, win bids and contracts, and maintain a strong reputation in the industry.

Errors and Omissions Insurance

Errors and omissions (E&O) insurance, also known as professional liability insurance, is a type of insurance that covers professional mistakes or omissions that may result in financial loss or damage to a third party. In the roofing industry, errors and omissions insurance can protect contractors and businesses from legal claims and financial losses resulting from negligence or errors in the services they provide.

Roofing contractors who offer professional services, such as roof inspections or consultations, are especially vulnerable to errors and omissions claims. For example, if a roofing contractor overlooks a critical issue during a roof inspection or provides incorrect advice that leads to damage to a customer’s property, the customer may file a legal claim for damages. Errors and omissions insurance can help cover the legal defense costs and settlement or judgment costs, which can be significant.

Without errors and omissions insurance, a roofing contractor may be held personally liable for the full cost of damages resulting from professional errors or omissions. This can lead to financial ruin and damage to the contractor’s reputation. By having errors and omissions insurance, roofing companies can protect their assets and reputation while also providing peace of mind to their customers that they are covered in case of any mistakes or errors.

In addition to protecting against legal claims, errors, and omissions insurance can also be a valuable marketing tool for roofing companies. By advertising that they carry errors and omissions insurance, roofing companies can demonstrate their commitment to quality and professionalism, which can help them stand out in a competitive marketplace.

Hire an Insured and Licensed Roofing Contractor with Years of Experience

As a customer, when looking for a roofing contractor in New York, it’s essential to make sure you only hire insured and licensed professionals with years of experience. The roofing industry can be complex and risky, and inexperienced or uninsured contractors could put you and your property in jeopardy. By hiring a licensed and insured contractor with years of experience, you can have peace of mind knowing that they have the knowledge and skills to get the job done right, and in the event of any unforeseen accidents or damage, they have the necessary coverage to protect you and your property.   

Don’t take any risks when it comes to your roofing needs – only trust a professional roofing contractor with a proven track record of success and the proper insurance and licensing to back it up.

Go To Top