Roofing insurance is essential, yet many contractors struggle to find the right coverage. 

At ContractorNerd, we make roofing liability insurance and business insurance straightforward and data-driven. We’ve analyzed quotes for roofers from leading insurance carriers to provide transparency on costs and coverage options.

Roofers Insurance – What Do You Need?

For roofers, selecting the appropriate insurance coverage is crucial and varies based on the size and stage of your business. Here’s a guideline:

Sole Proprietor Roofers:

  • Roofing Liability (aka General Liability) insurance is fundamental, covering property damage and non-employee bodily injury. Many customers will ask if you’re licensed and insured; this is the insurance they are asking about.
  • Tools and Equipment (aka Inland Marine) coverage is essential. This covers your expensive roofing tools and equipment that enable you to work safely and effectively.
  • Contractor’s E&O (aka Faulty Workmanship) coverage protects you against claims arising from faulty installation, materials, or waterproofing issues.
  • Commercial Auto coverage is needed if you have a truck you use to transport roofing materials and equipment.

Small Roofing Business (2-3 Employees):

  • Workers compensation is required when you hire employees (not subcontractors)
  • Commercial property is important to protect equipment storage areas, offices, and inventory of roofing materials
  • Umbrella Insurance (or higher limits on your Roofing Liability) should be considered due to the high-risk nature of roofing work

Established Roofing Business (5+ Employees):

  • Buildings & Contents coverage protects your facility and its contents against fire, theft, and damage – essential for roofers with warehouses and storage spaces
  • Installation Floater covers materials and equipment in transit to or stored at job sites awaiting installation – critical for roofers handling expensive materials like solar tiles or high-end roofing systems
  • Employment practices liability insurance (EPLI) to protect owners against potential lawsuits from employees

Roofing Liability Insurance – aka General Liability

If there was a single coverage critical for all Roofers, this is it. Roofers need this insurance because your work involves significant risks every day – heights, weather exposure, heavy materials, etc. Types of claims commonly faced include:

  • Property Damage: Accidental damage to a client’s property during roof work, including water damage from unexpected weather
  • Bodily Injury: A client, visitor or bystander getting hurt due to falling materials or debris
  • Defective Products: Lawsuits over installed roofing materials that turn out defective (Add-On)
  • Completed Work: Lawsuits over issues from past completed jobs, such as leaks or structural problems (Add-On)

Roofing Liability Insurance – aka General LiabilityLiability Limits for Roofers:

When it comes to liability coverage, roofing contractors typically choose between two primary coverage limit options, with the decision largely depending on their business size, project types, and risk exposure.

The $1 million per occurrence limit is a common starting point for many roofing contractors, particularly those who are just establishing their businesses or primarily focus on residential projects. This coverage level provides adequate protection for most standard residential roofing jobs and is generally more budget-friendly for smaller operations. Many new contractors find this limit sufficient while they build their client base and establish a track record in the industry.

However, as roofing businesses grow and take on larger or more complex projects, many opt for the $2 million limit. This higher coverage level is often required for commercial projects and provides enhanced protection given the increased risks associated with larger-scale roofing work. While this increased coverage typically results in a 10-15% premium increase over the $1 million limit, most established contractors find this additional cost justified given the greater protection it provides.

The decision between these coverage limits should take into account several factors, including project scope, client requirements, and risk tolerance. Many contractors start with the $1 million limit and gradually increase their coverage as their business expands and they take on more substantial projects. It’s worth noting that some commercial clients and larger projects specifically require the $2 million limit as part of their contractual requirements.

Key Factors Influencing Roofing Liability Premiums Include:

  • Revenue: Higher revenue means more work and potential claims
  • Policy Limits: Higher limits means more risk and higher premiums
  • Claims History: Clean record means lower premiums
  • Location: State regulations and weather patterns impact premiums
  • Class Codes: Different roofing specialties carry varying risks based on the type of work and building height. Here are the key class codes that roofers need to know:
    • Class 98678: Residential Roofing (Three Stories and Under) – Applies to all roofing operations on residential buildings that are three stories or less in height. This is the most common class code for residential roofers.
    • Class 98677: Commercial and High-Rise Residential Roofing – Covers roofing work on commercial buildings, industrial buildings, and residential buildings over three stories in height. Also applies to mixed-use buildings.
    • Class 91583: Subcontracted Residential Roofing – Specifically for subcontracted work on one or two-family dwellings only. This applies when you’re working as a subcontractor on residential construction, reconstruction, repair, or erection projects.

Roofing insurance is essential, yet many contractors struggle to find the right coverage and understand true costs. At ContractorNerd, we make roofing liability insurance and business insurance straightforward and data-driven. We’ve analyzed quotes for roofers from leading insurance carriers across all states to provide transparency on costs and coverage options.

Roofing Liability Insurance Cost – ContractorNerd’s Quotes Study

We’ve analyzed comprehensive data from roofing contractors across different states and business sizes. While exact rates vary by individual circumstances, here are the typical annual premiums:

– Small Roofing Contractor ($150K Revenue, 1 employee) – $5K to $15K

– Medium Roofing Contractor ($500K Revenue, 3 employees) – $10K to $30K

– Large Roofing Contractor ($1M Revenue, 5 employees) – $15K to $50K

New roofing ventures typically pay higher premiums initially, as insurers need time to evaluate risk. After several years of incident-free operation, premiums often decrease.

State-by-State Premium Analysis

Below is a detailed breakdown of typical general liability insurance premiums for roofers based on our comprehensive state analysis. Each scenario assumes:

– $150K Revenue: 1 owner, ~10% subcontracting costs, 5+ years experience, no claims

– $500K Revenue: 1 owner, 3 employees, ~10% subcontracting costs, 8+ years experience, no claims

– $1M Revenue: 1 owner, 5 employees, ~10% subcontracting costs, 13+ years experience, no claims

State$150K Revenue$500K Revenue$1M Revenue
Avg. Premiums% of RevenueAvg. Premiums% of RevenueAvg. Premiums% of Revenue
California$7,4004.9%$15,4003.1%$20,5002.1%
Texas$12,3008.2%$21,9004.4%$32,2003.2%
Florida$16,20010.8%$32,2006.4%$47,4004.7%
Washington$11,5007.7%$21,4004.3%$36,1003.6%
Pennsylvania$12,9008.6%$26,6005.3%$46,7004.7%
Illinois$14,7009.8%$26,5005.3%$38,3003.8%
Michigan$10,7007.1%$19,8004.0%$28,7002.9%
North Carolina$7,6005.1%$14,4002.9%$21,0002.1%
Virginia$6,4004.3%$11,9002.4%$17,4001.7%
Massachusetts$7,6005.1%$14,1002.8%$20,7002.1%

Workers’ Compensation Insurance for Roofers

For roofing businesses with employees, it’s essential to have Workers Compensation Insurance for Roofers. This mandatory coverage offers critical benefits such as medical care, partial wage replacement, rehabilitation services, and death benefits for employees who suffer job-related injuries or illnesses. Workers’ compensation insurance premiums are based on the job-related risk, which is categorized into class codes. Common class codes for roofers are 5551, 5552, and 5553. The typical rate ranges from $15 to $45 per $100 of payroll annually per employee.

Class Code 5552 (Base Classification)

– For roofing employees earning less than $31.00/hour

– Covers all types of roofing work: installation, repair, removal, and waterproofing

– Includes all materials: shingles, tar, bitumen, tile, sheet metal, membranes

– Includes shop, yard, and storage operations

Class Code 5553 (High Wage Classification)

– Identical work scope as 5552

– Only for employees earning $31.00/hour or more

– Lower premium rate ($12.20 per $100 of payroll as of 9/1/2024)

– Requires verification through physical audit

Special Cases

– Roofing with carpentry: Use 5403/5432

– Roofing with sheet metal work: Use 5538(1)/5542(1)

– Solar panel installation: Use 3724(2)

Additional Insurance Roofers Should Consider

Beyond the essential policies detailed above, here are additional insurance types roofers may need as their business grows:

Tools & Equipment Insurance (Inland Marine)

Inland Marine Insurance protects tools and equipment during transit and at job sites against loss, theft, or damage. Annual premiums range from $300-$2,500, with policy limits of $10,000-$25,000+.

Contractors’ E&O Insurance

Protects against business mistakes and negligence claims in roofing work. Covers costs if clients claim faulty installation, water damage, or subpar service. Includes professional negligence claims, legal defense, and judgments. Annual premiums range from $1,000-$3,500, with policy limits of $100,000-$2M+.

Commercial Auto Insurance for Roofers

Commercial auto insurance protects work vehicles and covers liability from accidents during business operations. Personal auto policies don’t cover business use. Premiums range from $2,000-$4,500 per vehicle annually. Standard limits are $100K per person, $300K per accident, and $100K property damage, though higher limits ($1M-$2M) are recommended for comprehensive protection.

Bonds for Roofers

Surety bonds guarantee work quality and fulfill licensing requirements. Typical bond amounts range $10,000-$50,000, with roofers paying 2-5% as premium. 

Commercial Property Insurance for Roofers

Commercial property insurance protects buildings and contents (tools, materials, equipment) against fire, theft, vandalism, and weather damage. Essential for roofing businesses with warehouses, storage yards, or showrooms. Annual premiums range $2,000-$7,500, based on property value, location risks (disasters, crime), and building construction type.

Business Owner’s Policy (BOP) for Roofers

A Business Owner’s Policy bundles general liability and commercial property insurance. This can be a better option for businesses with physical locations, it covers customer injuries, property damage, business assets, and business interruption. Typically you will see lower premiums than separate policies but less flexibility. Premiums based on business size, location, claims history, and additional coverage added.

Commercial Umbrella Insurance for Roofers

An alternative to increasing your limits on your general liability policy is an umbrella policy. This type of insurance provides additional liability coverage, extending beyond the limits of your standard policies like general liability, auto liability, and employer’s liability. In the event of a substantial claim that surpasses the limits of your primary policies, umbrella insurance steps in, offering extra financial protection. Typically adds $2M coverage (up to $5M+ available). Annual premiums: $1,500-$3,000.

Employment Practices Liability Insurance for Roofers

Protects against employee claims of discrimination, harassment, wrongful termination, and other workplace issues. Annual premiums: $1,500-$7,500. Policy limits: $250,000-$2M.

Cyber Liability Insurance for Roofers

Protects against data breaches and cyberattacks, covering investigation, customer notification, credit monitoring, PR, and legal costs. Policy limits: $100K-$1M. Annual premiums: $500-$1,500.

Roofer Safety & Compliance Checklist

Review these items before starting any roofing project. All tips are expanded by default. Checking a box hides the tip; unchecking (or clicking the info icon) brings it back.

Per OSHA guidelines (e.g., 1926.501(b)(13)), roofers must use fall protection when working six feet or more above lower levels. Proper gear significantly reduces fall injuries and liability risks.
Identifying hazards before work begins is crucial. Employers must assess the job site for potential fall exposures or structural weaknesses to protect workers. This step helps prevent accidents due to unforeseen dangers.
High winds, storms, or extreme weather increase the risk of falls, flying debris, and structural damage. Proactively checking forecasts and halting work during severe conditions helps keep roofers safe.
OSHA standards (1926.1053) require ladders to extend at least three feet above the upper landing for safe access. Improper ladder setup is a leading cause of roof-related injuries and falls.
Proper handling and storage of roofing materials prevent shifting, falling objects, and worker injuries. Safe lifting techniques reduce muscle strain and workplace accidents.
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Why Insure Your Roofing Business With ContractorNerd?

We’ve analyzed quotes from roofers across all states to find the best rates. Our analysis shows potential savings of 15-45% on liability premiums through our network. Get competitive quotes matched to your business size and risks.

Business Size Potential Savings:

Small ($150K Revenue) 25-45%

Mid ($500K Revenue) 20-35%

Large ($1M+ Revenue) 15-30%

Get quotes today for rates specific to your operation.