Consider this before buying Roofing Insurance

A roofing insurance policy can be a great investment for your roofing business. However, you should have some things in mind before searching for any options. This article will help you understand what to look for in the policy and other useful tips for making the right decision. 

What is roofing insurance, and what does it cover?

Roofing contractors’ insurance policies protect roofing companies from any risk associated with the job site. The U.S Bureau of labor statistics put the fatality rate of roofers per 100,000 construction workers at about 47.0% in 2020. This shows how dangerous the roofing job is and why you must carry a policy for liability coverage in case accidents happen.

Every roofing business owner must carry the appropriate roofing insurance policy to protect their financial assets if any covered loss occurs while handling a roofing project. These policies can cover medical bills, claims from property damage and bodily injury, and pay for workers’ compensation benefits. 

Things to Consider Before You Buy Roofing insurance

  1. The Type Of Roofing Insurance You Need

There are different types of roofing liability insurance policies roofing businesses should carry as protection against potential loss. They include:

Roofing General Liability Insurance 

The roofer’s general liability policy provides coverage against third-party injuries, property damage, and advertising injury claims. Most states demand that every roofing contractor must carry this insurance policy alongside the workers’ compensation insurance.

General liability coverage covers court costs, legal fees and judgment, medical expenses, and other costs roofing contractors may incur while handling a job. General liability insurance is so vital that some homeowners won’t hire a roofing contractor without the insurance policy.

Every licensed roofing business leverages a general liability insurance policy to win more jobs and prove its legitimacy. 

Commercial Auto Insurance

Roofing contractors that use work vehicles must purchase a commercial auto insurance policy. Unlike personal auto insurance, this policy covers the vehicle a roofing contractor uses for work. The insurance coverage includes property damage, bodily injury, and any resulting lawsuits. Thus, you can expect the insurance policy to pay the medical payments, repair costs, and legal fees incurred when your work vehicle is involved in a collision. 

Professional Liability Insurance

This policy protects you against any insurance claim that may result from poor workmanship, negligence, professional mistakes, or omissions. Roofing contractors can’t always be perfect. Thus, they need this policy to cover legal defense costs and other associated expenses if mistakes occur. 

Tools and Equipment Insurance

This roofing contractor  insurance protects the tools and equipment a roofing contractor uses to carry out his job. It covers damage, loss, or theft. 

Workers’ Compensation Insurance

Roofing companies with employees under them must have workers’ compensation insurance. State laws require that every employing business needs to carry workers’ comp to ensure injured employees that suffer an injury on the job get appropriate compensation. 

Workers’ comp only covers work-related injury or illness, and it doesn’t extend beyond the listed employees of such company. Employers are meant to file workers’ compensation claims for an injured employee by filling out a form and other requirements. After it, this policy  will take care of medical bills, lost wages for injured employees and other associated expenses.

Surety Bonds

This policy ensures that a roofing contractor completes a project as expected and documented in the contract. The insurance company will have to pay the homeowner if the roofer fails to maintain the agreement. 

Business owners’ policy

BOP is a bundle of policies that reduces the insurance premiums you would have paid if you purchased General Liability, Business Interruption, Property Insurance, and other coverages separately. 

  1. Consider how much does roofing insurance cost and compare quotes

The insurance premium cost is another thing to consider before buying any business insurance policy as a roofer. Roofing insurance rates vary from every insurance company, and they have certain factors to consider before issuing a quote. Some of the factors include your company’s accident history, how many employees you have, the average age and legal background of your employees, the company’s location, company duration of existence, etc. 

You can leverage reputable insurance agencies to get free quotes from multiple insurance companies and compare. ContractorsLiability.com is an insurance agency with numerous A-Rated companies that offer the best rates in the market. They can help you get an affordable roofing insurance that offers the best coverage

  1. Implement Risk Reduction Techniques 

The fewer the chances of claims on your roofing insurance policy, the less the coverage options and insurance premium you’ll have to pay. Thus, you should consider implementing certain techniques to reduce the risk you’re exposed to before purchasing roofing business insurance as an owner. Providing workers with appropriate safety equipment for work, sensitization on work safety, verification of employee expertise, etc., can help reduce the possibility of claims.

  1. Consider the Coverage Your Business Needs 

You must review your business and determine the coverage you need before purchasing any policy. For businesses without employees (Self-employed contractors), you  don’t need a workers’ compensation policy. 

Also, businesses with no work vehicle and physical business space don’t need auto and property insurance, respectively. The scope of your business and how you carry out your services determine the business insurance you need and your coverage limits.

Conclusion

Having the right insurance policy can always save roofing contractors from possible and unfortunate risks. However, it’s necessary to consider certain factors before starting the purchasing process. This will ensure you spend less on protecting your business and focus more on maximizing your coverage options
Here is the deal: one of the best decisions would be to choose a genuine and experienced and independent broker like ContractorsLiability.com, since they work with multiple carriers, have a wide expertise on the industry and certainly it is much easier and less expensive, to get a policy that specifically meets the project’s needs and requirements.

TIME BUSINESS NEWS