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What is roofing insurance?

Roofing insurance is an insurance package specially designed to protect roofing contractors from the unique risks they face while installing and repairing roofs. Working at heights and handling heavy materials like shingles or metal panels comes with hazards which makes roofing one of the more dangerous trades. Roofing insurance helps cover the costs if something goes wrong—like accidents, property damage, or injury—so you aren’t held financially responsible. In other words, it’s your financial safety net.

Without this coverage, you could be left paying out of pocket for expensive claims or lawsuits, which could seriously harm your business and finances.

What does roofing insurance include

A standard roofing insurance policy should cover the following:

• Commercial general liability insurance: This insurance is meant to protect other people and their property from damage while you’re working or as a result of your work. For example, say a tool falls off the roof and hits someone, or you accidentally damage part of the property you're working on. In this case, general liability coverage would handle the costs. It usually also includes completed operation insurance, which protects you from liability if something goes wrong after the work has been completed.
• Commercial auto insurance: If you use a vehicle for work, you’ll need this to cover any accidents or damages while transporting materials or traveling between job sites. Even if you're the sole proprietor and run your business by yourself, your personal car insurance will not protect your vehicle if you use it for work.
• Equipment insurance: Your tools are essential to your business, and equipment insurance will cover the repair or replacement costs if they are damaged or stolen. Do note that it does not reimburse you for damage from wear and tear.

Recommended add-ons for roofing contractor coverage

In addition to the basics, there are extra coverage options that can give you added peace of mind. Depending on your business, these might be worth looking into:

• Professional liability insurance: This covers you if a client claims your work was faulty or inadequate, or negligible. Even if the claim is false, legal fees can add up quickly. This policy will cover your legal costs or any payments you’re required to make.
• Installation floater insurance: Because roofing materials like shingles, metal sheets, or other supplies can be expensive, you should consider adding installation floater insurance to your package. Similarly to equipment insurance, this policy will protect your supplies and materials from being damaged or stolen before installation, preventing you from having to pay out of pocket.
• Pollution liability insurance: Roofing on older buildings can stir up hazardous materials, like asbestos. Pollution liability insurance covers the cost of cleanup or legal claims if you accidentally release these into the environment.

Common types of roofing contractor claims

As a roofing contractor, you'll likely face various situations where insurance claims are needed. Here’s a rundown of scenarios you should know about:

• Property damage claims: If you accidentally damage a client’s property, like breaking a window or messing up their landscaping while working on their roof, you can file a claim with your commercial general liability insurance to cover the necessary repair costs.
• Faulty workmanship claims: If your roofing job leads to issues like leaks due to poor workmanship, a client might seek repairs or damages. Your professional liability insurance can help cover the costs associated with these claims such as legal fees and compensation.
• Equipment theft or damage: Your tools and equipment are crucial. If they’re stolen from a job site or damaged, tools and equipment insurance can cover the costs for repairs or replacements.
• Completed operations claims: If after finishing a project, you forget to properly secure one of the gutters and it falls off and damages your client’s car, you can use completed operations coverage to cover any associated costs. This insurance is part of your commercial general liability package, and similarly, it protects third parties and their property but only after the work has been completed.

How much does roofing insurance cost?

The cost of roofing insurance can vary widely depending on several factors. In Canada, roofing businesses typically pay between $1,500 and $5,000 annually for insurance coverage. Several things can influence the price:

• The size of your business
• The type of roofing work you do (residential or commercial)
• The number of employees you have
• Where your business operates
• Your claims history

In general, larger companies, those with more employees, or businesses with a history of claims will pay more. On the other hand, a smaller operation with fewer employees and a clean safety record could find cheaper rates.

How to get the cheapest roofing insurance rate

Saving money on roofing insurance is possible if you know where to look. Here are a few strategies to help lower your premium:

• Shop around: Don’t settle for the first quote you get. Insurance providers can vary widely in their rates, so get multiple quotes to find the best deal.
• Bundle your policies: Many insurers offer discounts when you bundle different types of coverage, like liability, auto, and equipment insurance, under one policy.
• Increase your deductible: A higher deductible can reduce your monthly premium, but make sure you can afford to pay the higher amount upfront if you ever need to file a claim.
• Maintain a good safety record: Fewer claims generally mean lower premiums. By prioritizing safety on the job, you can avoid accidents and keep your insurance rates lower.
• Pay annually: Some insurance companies offer discounts if you pay your premium in one lump sum for the year, rather than spreading it out with monthly payments.

Roofing insurance in Canada: What you need to know

Roofing contractor insurance in Canada involves a lot more than just knowing what’s covered. Here are some key things you should be aware of:

• High-risk industry: Roofing is classified as high-risk because of the work you do, such as working at heights, handling heavy equipment, and sometimes dealing with hazardous materials. This means your insurance premiums will likely be higher compared to other trades.
• Certification and licensing: Many provinces require roofing contractors to be licensed, and part of that process includes having the right insurance. Without it, you might not be able to get or renew your license.
• Seasonal nature of work: Since roofing is often seasonal in Canada, some insurers offer flexible coverage options for the off-season, which could help lower your costs during slow months.
• Workers' compensation: If you have employees, you are required by all provinces to carry workers’ compensation insurance. This insurance covers medical expenses and lost wages if an employee is injured on the job. It operates separately from your standard business insurance policy and each province has its own regulatory board that oversees the management and pricing of this coverage.