Roofing Business Insurance: Costs, Coverage, and Best Providers

Why roofing contractors need insurance

Roofing is a risky job. Working at heights can lead to slips, falls, or an accident with heavy equipment, and unpredictable weather only adds to the danger.

These risks don’t just affect the safety of roofers—they can also lead to costly injuries, property damage, or project delays.

That’s where roofing business insurance comes in. It’s a safety net for the unexpected. But the benefits go deeper than just peace of mind.

Clients expect you to be professional, and part of that is showing you’ve got the right coverage. Some homeowners won’t even hire a contractor without seeing proof of insurance. They want to see that you’re responsible and prepared.

And depending on where you’re based, your state may require certain insurance policies, like workers’ comp or liability coverage.

READ MORE: How to start a roofing company

Essential types of insurance for roofing businesses

From the tools you use to the people on your team, having the right small business insurance is like having a backup plan for every “what if.”

Here are the core policies most roofers should consider:

General liability insurance

General liability coverage is one of the most critical protections. It shields your business from costs related to third-party injuries or property damage caused while you’re working.

Say you’re repairing a roof, and a stray piece of debris damages the client’s car. Or worse, a neighbor slips on loose materials on the worksite. Without coverage, these accidents could hit your bank account hard.

When it comes to policy options, you might hear about “occurrence-based” versus “claims-made” coverage. Occurrence-based policies cover incidents that happen during the policy period, even if the claim is filed later.

Claims-made policies, on the other hand, only cover claims filed while the policy is active. For roofing, an occurrence-based policy is often the better choice with longer-term protection.

General liability insurance gives you peace of mind, so any unexpected incidents don’t hurt your finances or reputation.

Pays out to: Your customers and other people outside your company.

Workers compensation insurance

Between high ladders and heavy materials, injuries can happen. Workers’ comp covers medical expenses, lost wages, and rehabilitation costs for your employees if they get hurt on the job.

For example, if an employee slips on a roof and breaks their wrist, workers compensation insurance can cover their medical expenses and lost wages while they recover.

Not only is this required by most states, but it’s good for employee morale. When your crew knows you’ve got their back, they won’t have to worry about being covered if something happens on the job.

Pays out to: Your employees.

Commercial auto insurance

If your business involves a fleet of trucks, a van, or just a pickup to haul shingles and ladders, you need commercial auto insurance.

Standard car insurance won’t cut it for vehicles you use for work. If there’s an accident, you don’t want to be left without coverage.

This policy covers damage from accidents, theft, or vandalism involving your company vehicles. It also protects you if an employee driving a work vehicle causes an accident.

Hauling materials, moving equipment, or simply driving to job sites are things you do every day. Protecting your vehicles is a must.

Pays out to: Drivers and passengers affected by your vehicle damage.

Tools and equipment insurance

Your tools are more than just gear—they’re an extension of your expertise. If they’re lost or damaged, tools and equipment insurance helps replace them so you can get back to work right away.

Imagine showing up to a job site only to find that someone broke into your equipment trailer and stole your tools. Not only is that a bad day, but it’s a potential job delay. This insurance keeps your operations running, covering everything from nail guns to scaffolding.

Pays out to: Your company.

Pro Tip: Keep an inventory of your tools and their value to ensure your insurance coverage aligns with your needs. This way, you’ll avoid being underinsured and can replace tools without paying the difference out of pocket.

READ MORE: Essential roofing tools list

Commercial property insurance

If you have a physical office or warehouse for storing materials, commercial property insurance will protect it all. Whether it’s a fire, theft, or some other disaster, this policy ensures you can recover quickly without taking a financial hit.

What’s reassuring is that this coverage doesn’t stop at the building itself. It also includes the materials and equipment stored inside. It’s not just about the building—it’s about safeguarding everything inside that keeps your business running smoothly, giving you the confidence to focus on what matters most.

Pays out to: Your company or your financial lender/lessor of the space.

Optional insurance for additional protection

Sometimes, the standard policies aren’t enough to fully protect your business. Here are a few optional policies for roofing contractor insurance that can add an extra layer of protection.

Professional liability insurance

Roofing also involves advising clients on the best materials and designs. But what happens if your advice doesn’t pan out? Professional liability insurance steps in to cover claims of errors, omissions, or negligence.

For example, let’s say you recommend a specific roof system for a client, but it fails to meet their expectations (or worse, causes damage). Even if you were following the industry’s best practices, you could face a lawsuit. Professional liability insurance shields your business from the financial fallout.

It’s especially valuable if you offer consultations or design services as part of your roofing business. Not every contractor needs this insurance coverage, but it’s worth considering if you want to protect your reputation and your wallet.

Pays out to: Your customers.

Umbrella liability insurance

If you’re working on commercial roofing projects or high-value homes, there’s always a chance a standard liability policy might fall short. That’s where umbrella liability insurance comes in.

This provides extra coverage once your other policies (like general liability or auto insurance) hit their limits. For example, a major accident at a worksite turns into a lawsuit exceeding your $1 million general liability limit. Your umbrella policy will kick in to cover the difference.

If you’re working on big-ticket projects or in a litigious area, give this coverage serious thought. You’d rather have the cushion and not need it than the other way around.

Pays out to: Clients and other people outside your company.

Surety bonds

Surety bonds aren’t insurance in the traditional sense, but many roofing contractors still have them.

Let’s say you’ve been hired to install a new roof, but unforeseen circumstances prevent you from finishing the job. A surety bond compensates the client for any losses they have to “eat” as a result.

These are the types of bonds to know:

• License and permit bonds: These prove you’re operating within legal guidelines.
• Performance bonds: These guarantee you’ll complete a project as agreed.
• Payment bonds: These make sure your subcontractors and suppliers get paid.

Best insurance companies for roofing contractors

When it comes to business insurance for roofing, several companies stand out for their options and industry expertise.

Here are some of the top providers that cater to roofers:

• Contractors Liability: This provider focuses on contractors and offers customized policies. They understand the unique risks that roofing businesses face.
• CoverWallet: This company offers a centralized platform to manage all your policies. They make it easy for roofing businesses to keep track of their insurance.
• Embroker: This provider uses technology to offer fast quotes and instant underwriting. This can be great for roofing contractors who need coverage quickly.
• Hiscox: This company specializes in small business insurance and offers policies tailored to roofing contractors. Hiscox is known for having flexible coverage options and excellent customer support.
• Next Insurance: This provider stands out for its digital-first approach and quick online quotes. They offer customizable policies that can be adjusted as your business grows.
• Simply Business: This company allows you to compare quotes from multiple insurers, saving you time to find the best deal for your business.

What does roofing business insurance cost?

When it comes to insurance costs for your business, there’s no one-size-fits-all answer. Several factors can influence how much you’ll pay for coverage, from the size of your team to the types of services you offer.

Here are the biggest factors that insurance providers consider when calculating your premiums:

• Business size: A solo roofer will typically pay less than a company with a full crew. More employees mean more liability exposure, which increases your costs.
• Location: Where you’re based plays a role. Areas prone to extreme weather events (such as hurricanes or hailstorms) often result in higher premiums as the risks are greater.
• Claims history: Had a few accidents or past claims? That history could bump up your rates. On the other hand, a clean record might help you score some discounts.
• Type of work: Are you primarily handling roof installations or sticking to maintenance and repairs? Riskier tasks, like working at higher elevations or using heavy machinery, tend to result in higher premiums.
• Revenue and payroll: Insurers often use your annual revenue and payroll to estimate your exposure. More revenue and larger payrolls suggest a higher volume of jobs, which could potentially mean more claims.

And here’s what you’ll likely pay for common roofing insurance policies:

• Roofer general liability insurance: About $267 per month, which amounts to approximately $3,204 annually.
• Workers compensation insurance: Premiums vary by state and the size of your payroll. On average, you might pay between $9.90 and $15.25 per $100 of payroll.
• Commercial auto insurance: For your work vehicles, expect to pay around $173 per month, totaling about $2,076 per year.
• Tools and equipment insurance: Protecting your gear is relatively affordable. Premiums average $14 per month, or $168 annually.
• Commercial property insurance: Often bundled within a business owner’s policy (BOP), the cost is $98 per month on average, or $1,173 per year.

How to create a roofing insurance policy

Getting insurance is an important step in protecting your roofing company. Here are three steps to building a policy tailored to your needs.

1. Assess your risks

Look at your daily operations. Do you install steep-slope roofs, manage a team climbing ladders daily, or haul heavy equipment in company trucks?

Think about risks specific to roofing, such as:

• Fall from heights
• Weather-related damage
• Slip-and-fall accidents
• Equipment theft or damage
• Property damage
• Exposure to hazardous materials
• Fire hazards
• Vehicle accidents
• Installation errors or defects
• Legal risks
• Natural disasters
• Equipment malfunctions
• Electrical hazards
• Client or bystander injuries

Make a list of what needs insurance coverage, including your:

• Vehicles
• Tools
• Materials stored at job sites
• And protection against injuries to clients or employees

A thorough risk assessment ensures you won’t be caught off guard if something goes wrong.

2. Compare insurance providers

Not all insurers are experienced with roofing businesses, so look for companies that specialize in high-risk industries.

Providers, like those listed in the table above, are known for tailoring policies to contractor insurance.

When requesting quotes, compare premiums, coverage limits, and deductibles. Ask about add-ons like tools and equipment insurance or umbrella policies that might suit your projects.

3. Work with a roofing-savvy insurance agent

An experienced agent who understands the challenges of roofing can save you time and money. They’ll know which policies are essential—like workers comp for your crew working at heights—and how to combine coverages.

A good agent will also help you navigate the nuances of your industry, like meeting homeowner expectations or state requirements.

Building the right insurance policy might feel overwhelming. But with a tailored approach and the right provider, you’ll have the peace of mind to focus on growing your business.

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