A roofing contractor in the United States usually needs commercial general liability, workers' compensation, commercial auto, and tools and equipment coverage. As of, most roofing companies should also consider a business owner's policy or commercial property insurance. Larger contractors may need commercial umbrella insurance.
The right package depends on the contractor's state, employees, vehicles, equipment, type of roofing work, and customer contracts. Insurance requirements vary across the country. For example, California requires active C-39 roofing contractors to maintain workers' compensation coverage or approved self-insurance, even if they have no employees.
Roofing Contractor Insurance at a Glance
| Insurance coverage | What it protects | Who generally needs it |
|---|---|---|
| Commercial general liability | Third-party bodily injury, property damage, and certain lawsuits | Nearly every roofing contractor |
| Workers' compensation | Employee work-related injuries and illnesses | Contractors with employees, subject to state rules |
| Commercial auto | Business vehicles, work-related driving, and vehicle liability | Contractors using trucks, vans, or trailers for work |
| Tools and equipment insurance | Mobile tools and equipment at jobsites, in transit, or in vehicles | Most active roofing contractors |
| Business owner's policy or commercial property | Office, warehouse, inventory, and business contents | Contractors with a building, storage unit, or significant property |
| Commercial umbrella or excess liability | Liability limits above general liability, auto, and employer's liability | Larger contractors and contractors working on higher-value projects |
| Contractor's professional liability or E&O | Design, consulting, inspection, or workmanship-related professional claims | Contractors providing advice, design, or technical services |
| Installation floater or builders risk | Materials, temporary structures, and property during construction | Contractors responsible for materials before or during installation |
| Surety bond | Contract performance, payment, or licensing obligations | Contractors whose contracts or state rules require bonding |
1. Commercial General Liability Insurance Is the Essential Policy
Commercial general liability insurance, often called CGL, should be the foundation of a roofing contractor's insurance program.
CGL generally addresses claims that the roofing business caused:
- Bodily injury to a customer, visitor, neighbor, or other third party
- Property damage to a home, commercial building, vehicle, or landscaping
- Certain personal and advertising injuries
- Legal defense costs and covered settlements or judgments
The Insurance Information Institute describes CGL as coverage for financial loss caused by bodily injury, property damage, and certain negligent business operations. Workers' compensation and employment practices liability are separate coverages, not substitutes for CGL.
Roofing work creates several common liability risks:
- A shingle, tool, or piece of debris damages a vehicle
- A worker damages siding, windows, gutters, or landscaping
- Water enters a building after the work is finished
- A homeowner or visitor is injured at the jobsite
- A completed roof allegedly causes property damage months later
When comparing policies, ask about products-completed operations coverage. A roofing contractor may face a claim after the crew has left the property, so coverage should not apply only to accidents that happen during active work.
CGL is not automatically a workmanship warranty. Ask how the policy treats defective installation, damage to the contractor's own work, resulting damage, roof leaks, and repair costs.
2. Workers' Compensation Is Critical for Roofing Crews
A roofing contractor with employees generally needs workers' compensation insurance and employer's liability coverage.
Workers' compensation can pay covered medical expenses, rehabilitation costs, and part of an injured employee's lost wages. It may also provide benefits when an employee dies from a work-related injury.
Workers' compensation rules vary by state, although coverage is mandatory for most employers in every state except Texas. Texas employers can generally choose whether to subscribe to the state workers' compensation system.
Roofing has a serious fall exposure. OSHA generally requires fall protection for construction employees exposed to falls of 6 feet or more, with limited alternatives for specific roofing situations. OSHA also requires employers to train employees to recognize fall hazards and use the applicable fall protection systems.
A sole proprietor or owner-member may not be automatically covered by workers' compensation. State law may allow the owner to opt in, and a general contractor or commercial customer may still require proof of coverage.
Calling someone a "subcontractor" does not automatically remove the need for workers' compensation. The IRS evaluates the actual relationship, including behavioral control, financial control, tools, expenses, and the continuing relationship. A contract label alone does not determine whether a worker is an employee or an independent contractor.
3. Commercial Auto Insurance Protects Work Vehicles
A roofing contractor should use commercial auto insurance for vehicles owned, leased, or primarily used by the business.
Commercial auto coverage may apply to:
- Pickup trucks and vans
- Box trucks
- Trailers
- Vehicles used to transport shingles, ladders, and equipment
- Employees driving company vehicles between jobsites
- Business-related vehicle liability and physical damage
A personal auto policy may not adequately cover a vehicle used primarily for business. The Insurance Information Institute states that a business-owned vehicle generally requires a business auto policy. The SBA recommends commercial coverage when vehicles are used to visit customers, travel between worksites, haul tools, or make deliveries.
Ask about hired and non-owned auto coverage if employees use rented vehicles or personal vehicles for estimates, deliveries, or jobsite travel. This coverage is different from insurance for a company-owned truck.
4. Tools and Equipment Coverage Is Usually Worth Adding
Roofing contractors should insure mobile tools and equipment separately or confirm that their policy provides enough inland marine coverage.
A standard property policy may not provide enough protection for tools that move between a warehouse, truck, jobsite, and customer property. Tools and equipment coverage may address:
- Nail guns and compressors
- Ladders and scaffolding
- Power tools
- Generators
- Safety equipment
- Trailers and movable equipment
- Roofing materials temporarily stored at a jobsite, if the policy covers them
Inland marine insurance is commonly used for business property that moves or is transported away from the primary business premises. Roofing insurance providers identify tools and equipment coverage as a separate option for equipment kept in vehicles, trailers, or at jobsites.
Check whether the policy covers theft from an unattended vehicle, equipment rented from others, replacement cost instead of depreciated value, and equipment owned by employees.
5. A BOP or Commercial Property Policy May Protect the Business
A small roofing company with an office, warehouse, inventory, or business equipment should consider a business owner's policy or commercial property insurance.
A business owner's policy, or BOP, commonly combines general liability and commercial property coverage. Commercial property coverage can protect business contents, inventory, equipment, and the building itself against covered causes such as fire, vandalism, or certain weather-related losses.
A BOP does not automatically replace:
- Workers' compensation
- Commercial auto
- Mobile tools and equipment coverage
- Professional liability
- Pollution liability
- Commercial umbrella coverage
If the company stores large quantities of shingles, underlayment, flashing, or other materials, confirm that inventory limits are high enough. Also check whether the policy covers materials stored at a temporary location.
6. Commercial Umbrella Insurance Becomes More Important as the Company Grows
A roofing contractor should consider commercial umbrella or excess liability insurance when a serious claim could exceed the limits of the underlying policies.
Umbrella insurance can provide additional liability limits above eligible general liability, commercial auto, and employer's liability policies. It may be especially relevant when the contractor:
- Employs multiple crews
- Operates a fleet of vehicles
- Works on commercial buildings
- Performs work for general contractors
- Has substantial business assets
- Works near occupied buildings, pedestrians, or expensive property
- Must meet higher insurance limits in customer contracts
Travelers describes commercial umbrella coverage as protection above general liability, employer's liability, and commercial auto liability limits. Project owners and general contractors may also specify umbrella requirements in their contracts.
7. Professional Liability May Be Necessary for Design or Consulting Work
A roofing contractor should consider contractor's professional liability or errors and omissions insurance when the business provides design, inspection, engineering-related advice, specifications, or consulting services.
Examples include contractors that:
- Design roof systems
- Recommend structural or drainage solutions
- Perform roof inspections
- Prepare technical specifications
- Advise on building-envelope performance
- Provide consulting services to property owners or general contractors
The SBA identifies professional liability as coverage for financial losses arising from errors, negligence, or professional mistakes. Contractor's E&O coverage may address risks that ordinary CGL does not cover.
A contractor that installs materials according to plans may have a different professional liability need from a contractor that designs and certifies the entire roof system.
8. Installation Floater, Builders Risk, and Pollution Coverage Are Situational
Some roofing projects create risks that standard liability insurance may not cover adequately.
Installation Floater or Builders Risk
Consider an installation floater when the contractor is responsible for roofing materials, scaffolding, temporary structures, or equipment before installation is complete. The Hartford identifies installation insurance as coverage for materials, labor, temporary structures, and property being installed or erected by a contractor.
Builders risk may apply when the roofing contractor has responsibility for part of a larger structure under construction. The contract should identify who is responsible for insuring the building and materials.
Pollution Liability
Pollution liability may be appropriate for contractors involved with mold remediation, asbestos-containing materials, lead, hazardous coatings, chemical products, or contaminated debris. Pollution liability is generally not included automatically in standard CGL, according to the Insurance Information Institute.
Insurance Is Different From a Roofing Contractor Bond
A surety bond is not the same as insurance.
Insurance primarily protects the contractor against covered losses. A surety bond guarantees a specific obligation, such as completing a contract, paying suppliers, or complying with licensing rules. The SBA identifies bid, payment, and performance bonds as common contract bonds for small contractors.
A roofing contractor may need:
- A contractor license bond
- A bid bond
- A performance bond
- A payment bond
- A maintenance or warranty bond
Bond requirements depend on the state, project owner, and contract.
What to Confirm Before Buying a Policy
Give the insurance agent an accurate description of the roofing operation, including:
- Residential, commercial, or both
- Repair, replacement, new construction, or inspections
- Steep-slope and low-slope work
- Tear-off and disposal activities
- Use of subcontractors
- Number of employees and estimated payroll
- Company-owned and employee-used vehicles
- Tools, trailers, and equipment values
- Work involving skylights, solar panels, sheet metal, hot work, or hazardous materials
- States where the company performs work
The contractor should also review:
- Per-occurrence and aggregate liability limits
- Products-completed operations limits
- Exclusions for roofing, height, water damage, and faulty workmanship
- Coverage for subcontractor-caused losses
- Additional insured requirements
- Primary and noncontributory wording when required by contract
- Waivers of subrogation when required by contract
- Policy territory and completed-work reporting periods
- Deductibles and audit provisions
- Coverage for rented, leased, or borrowed equipment
Bottom Line
For most roofing contractors, the core insurance program includes:
- Commercial general liability with completed operations coverage
- Workers' compensation and employer's liability when required
- Commercial auto insurance
- Tools and equipment or inland marine coverage
- A BOP or commercial property policy when the business owns property, inventory, or an office
- Commercial umbrella insurance as project size, payroll, fleet size, or liability exposure increases
Add professional liability, installation coverage, pollution liability, and surety bonds when the contractor's work or contracts require them. State rules and contract terms differ, so a roofing contractor should have a licensed commercial insurance agent review the company's operations and major contracts before work begins.