Your roofing company insurance program should include third-party coverage and employee injury coverage. This is generally the extent of roofers insurance. Roofing Contractor Insurance is a form of contractor’s liability insurance, meaning that it that covers your business against the financial costs of damages done to your client or any passers-by. There are other policies that will extend your coverage to include things like theft and even protection of profits.
7 Answers to Roofers’ Questions
In this article, we’ll be answering some of the most common questions about roofing company insurance. We hope that this information and our tips will take away any frustration that you may feel when faced with the confusing world of insurance.
What is Roofers Liability Insurance?
Liability insurance is the cornerstone of your roofing company insurance program. It covers third party claims. For instance, a third party can be your client, a passer-by, a neighbor or a visitor to the construction site.
What does Liability Insurance cover?
Roofers Liability Insurance includes coverage for third party claims such as these:
- Property Damage: For example damage to the client’s paving from falling equipment; damage to a vehicle parked in the street when unsecured roof tiles land on the hood.
- Personal Injury: For example some of your work is not up to standard and reflects badly on the client. You could face a claim for personal injury as a result of damage to their business reputation..
- Bodily Injury: For example, a visitor to the site trips over some of your equipment. It does not even have to be your fault, you can still be found liable and have to pay damages and medical expenses.
Is Roofing Contractor Insurance mandatory?
Workers Compensation is mandatory across the country. General Liability Insurance is legally required in most states. It is wise to check before applying for contracts, because you may be sabotaging your changes without even knowing it.
What are the benefits of Roofing Contractor Insurance?
The top 2 benefits of Liability Insurance are:
- Protection against financial loss as a result of third party claims
- You are more likely to be awarded the contract because you are less likely to abandon a project when faced by losses from claims. Also, you will be compliant as liability insurance is mandatory in most states. You are unlikely to awarded a roofing contract without this coverage.
Does Liability Insurance cover my vehicle?
No. If you use your car to visit customers, pick up tools, or run work errands you will need to invest in Commercial Auto Insurance.
Does Liability Insurance cover my employees?
No, it only covers third parties, like your client or visitors to the worksite. Worker’s Compensation is what’s responsible for covering your employees.
Does Liability Insurance cover damage to the building?
No. Financial losses incurred by repairing damage to existing buildings and structures you are roofing can be covered by Builder’s Risk Insurance. This policy also offers coverage for the cost of re-erecting scaffolding that has fallen, the cost of project delay penalties and fines or the cost of replacing materials or tools stolen from the site.
Ask the experts
For answers to your other questions about Roofing Company Insurance and how the coverage can be customized for your business, speak with the consultants at Farmer Brown. Call (888) 973-0016