How Much Does Roofing Contractor Insurance Cost? 2025 Rates

Roofing contractors in the U.S. typically spend between $620 and $1,300 per year on business insurance. That works out to about $52 to $108 per month.

What Drives Premiums

Several factors influence how much coverage will cost:

• Services offered – Contractors handling complex roofing systems or hazardous materials face higher liability risks.
• Business size – Solo roofers usually pay less, while larger crews with multiple employees face greater exposure and higher workers’ compensation costs.
• Location – Operating in regions with severe weather, high crime, or higher lawsuit rates can raise premiums compared to lower-risk areas.
• Claims history – A clean record helps keep costs down, while past claims can increase rates.

Why It Matters

Understanding these cost drivers helps roofing contractors budget wisely and select coverage that matches their risks. With the right plan, they can protect their business, employees, and clients without overspending.

How Much Does Roofing Contractor Insurance Cost?

On average, roofing contractors spend between $620 and $1,300 annually on insurance. That equals about $52 to $108 per month. These figures are only estimates, and the actual premium depends on the details of your business.

Why Costs Differ

No two roofing businesses face the same risks. A solo contractor will usually pay far less than a roofing company with multiple subcontractors and larger projects.

Services and Risk Level

The type of roofing services you provide plays the biggest role in determining costs. Contractors handling complex installations, hazardous materials, or high-value projects often face higher liability premiums compared to those offering basic repairs.

Location and Property Value

Where your business operates matters. Roofing work in areas prone to natural disasters such as floods, fires, or hurricanes often comes with increased premiums. The size and value of your property and tools also influence commercial property insurance costs.

Key Cost Drivers

Several factors influence how much you’ll pay for coverage:

• Services offered – Impacts professional liability and tool coverage.
• Number of employees – More staff increases workers’ compensation requirements.
• Property size and value – Larger offices or costly assets raise property coverage costs.
• Claims history – Filing past claims often raises premiums, while a clean record can lower them.
• Business interruption and add-ons – Extra coverage options add to the total bill.

Why This Matters

Understanding these variables helps roofing contractors estimate insurance needs more accurately and budget for the real costs of protecting their business. With the right coverage, you can safeguard your livelihood, employees, and clients without overspending.

Average Roofing Contractor Insurance Costs For Coverage Types

When it comes to protecting yourself as a roofing contractor, different types of insurance cover different risks. Understanding the average cost, coverage details, and what influences pricing for each policy type can help you build a more effective insurance plan. Here’s a closer look at the major coverages most roofing contractors need.

General liability insurance: $252 per month

Commercial tool and equipment insurance: $49 per month

Business owner’s policy: $290 per month

Professional liability insurance: $79 per month

Surety bonds: A percentage of the bond amount

Workers’ compensation insurance: $261 per month

Commercial auto insurance: $146 per month

Commercial property insurance: $52 per month

Cyber liability insurance: $102 per month

General Liability Insurance

The average cost of general liability insurance for a roofing contractor is about $252 per month.

General liability covers third-party bodily injury, property damage, and injuries. For example, if a client trips and falls over loose roofing on a job site and gets injured, this policy would help pay for their medical expenses and your legal defense costs.

Typical policy limits are $1 million per occurrence and $2 million aggregate.

Factors that influence the cost include the business type (your services), location, office environment (if clients frequently visit your office), contract requirements, and previous claims history.

Average annual premiums by state:

Note: These estimates are based on average national General Liability Insurance premiums for roofing contractor businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on company size, number of employees, claims history, coverage limits, and insurer underwriting practices.

Commercial Tool And Equipment Insurance

The average cost of commercial tool and equipment insurance for a roofing contractor is about $49 per month.

This can help cover losses for equipment that you have to bring to and from your job sites, things that are less than 5 years old including flat boxes, taping banjos, knives, drills, or T-squares.

This type of inland marine insurance can protect your tools when being transported, when at a job site, or if stored somewhere other than your main commercial property.

Average annual premiums by state:

Note: These estimates are based on average national Commercial Tool and Equipment Insurance premiums for roofing contractor businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on the value of tools and equipment insured, theft risk, claims history, coverage limits, and insurer underwriting practices.

Business Owner’s Policy (BOP)

The average cost of a business owner’s policy (BOP) is about $290 per month for roofing contractors.

A BOP bundles general liability insurance with commercial property insurance. It protects against customer injuries, property damage, and loss or damage to your office building, furnishings, and equipment. For instance, if a fire damages your computers and files, the BOP would help cover repairs and replacements.

Typical policy limits are $1 million per occurrence and $2 million aggregate for liability, with separate property coverage limits based on the value insured.

Cost factors include the size of your business, location risk (such as flood or crime rates), business revenue, number of employees, and any optional endorsements like cyber protection, extra expensive coverage, or business interruption insurance. You might also need surety bonds to guarantee you will deliver on your contracts.

Average annual premiums by state:

Note: These estimates are based on average national BOP costs for roofing contractors, adjusted slightly to reflect regional variation. Actual premiums will vary depending on factors such as business size, payroll, claims history, coverage limits, and insurer. Always compare quotes from multiple providers to get the most accurate rate for your specific situation.

Professional Liability Insurance

The average cost of professional liability insurance for roofing contractors is about $79 per month.

Sometimes called errors and omissions, this type of insurance covers claims relating to errors, emissions, negligence, or other financial losses that a customer or client experiences because of the advice you gave. For example, if you work on residential projects, you might expect to pay less than someone working on roofing installation for a commercial property.

Typical policy limits are $1 million per claim, but higher limits are sometimes required by state laws or client contracts.

This policy can provide coverage in the event that a client sues you saying that your roofing job used the wrong material resulting in low points and leaks.

Cost depends on the size of your business, the services you offer, the number of years you’ve been in business, coverage limits, and claims history.

Average annual premiums by state:

Note: These estimates are based on national averages for Professional Liability Insurance tailored to roofing contractors, adjusted slightly to reflect regional variation. Actual premiums will vary depending on factors such as business size, claims history, coverage limits, and insurer underwriting. Always compare quotes from multiple providers to secure the most accurate rate for your specific situation.

Cyber Liability Insurance

The average cost of cyber liability insurance for roofing contractors is $102 per month.

Roofing contractor insurance covers the costs a roofing contractor might incur after a cyber incident. This extends to lost income after a cyber attack, forensic investigations, data recovery costs, regulatory fines, and the costs of informing customers about the attack.

Roofing contractors can benefit from this coverage if they handle any sensitive data, or if they want to cover gaps in their insurance.

Costs are based on factors like the size of your organization, the type of client data you handle, and the cybersecurity measures you already have in place.

Average annual premiums by state:

Note: These estimates are based on national averages for Cyber Liability Insurance tailored to roofing contractors, adjusted slightly to reflect regional variation. Actual premiums will vary depending on factors such as business size, data handling practices, claims history, coverage limits, and insurer underwriting. Always compare quotes from multiple providers to secure the most accurate rate for your specific situation.

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for a roofing contractor is around $261 per month.

Workers’ comp covers medical bills, rehabilitation, and lost wages for employees injured on the job. For example, if an employee trips and falls off a roof and breaks their wrist, workers’ compensation would cover their hospital visit and part of their lost wages while they recover.

Policy limits are regulated by each state, but typically include medical costs and a percentage of lost wages without a set cap.

Premiums are influenced by the size of your payroll, the type of work employees perform (whether in your office or on-site for each client), your claims history, and any implemented safety programs.

Average annual premiums by state:

Note: These estimates are based on average national Workers’ Compensation Insurance premiums for roofing contractor businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on payroll size, number of employees, risk exposure, claims history, and insurer underwriting practices.

Surety Bonds

In some cases as a roofing contractor you may be required to carry a performance bond guaranteeing that you will complete your project. This can be a bond through a licensed agency for suppliers and subcontractors which generally costs a percentage of the bond value somewhere between 0.5% and 10%.

Average annual premiums by state:

Note: These estimates are based on average national Surety Bond premiums for roofing contractor businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on bond amount required by state/local regulations, contractor credit score, claims history, and insurer underwriting practices.

Commercial Auto Insurance

The average cost of commercial auto insurance for roofing contractors is about $146 per month.

Commercial auto insurance covers vehicles owned or used by the business for accidents, theft, vandalism, or damage. For example, if a contractor causes an accident while driving to a job site, this policy would cover the damages and any third-party claims.

Typical policy limits are around $1 million combined single limit (covering both bodily injury and property damage).

Factors influencing the cost include the number and type of vehicles, how often they are used, the driving records of employees, and whether you add endorsements like hired and non-owned auto insurance (HNOA) for employee-owned vehicles used for company services like driving to and from off-site work.

Average annual premiums by state:

Note: These estimates are based on average national Commercial Auto Insurance premiums for roofing contractor businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on the number of vehicles, driving records, coverage limits, claims history, and insurer underwriting practices.

Commercial Property Insurance

The average cost of commercial property insurance for a roofing contractor, when purchased separately, usually runs $52 per month.

Commercial property insurance covers damage to the consulting building and its contents due to fire, theft, vandalism, or certain weather events. For example, if a fire destroys equipment like computers or tools at the office, this policy would pay for repairs or replacement.

Typical policy limits are based on the replacement cost value of the insured property, which could easily reach into the hundreds of thousands depending on your location, building size, and equipment investments.

Premiums are determined by factors like the building’s age and construction type, fire safety systems in place, replacement cost of equipment, neighborhood crime rates, and whether you add endorsements such as professional liability or cyber protection.

Average annual premiums by state:

Note: These estimates are based on average national Commercial Property Insurance premiums for roofing contractor businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on property value, office/warehouse location risks (fire, theft, natural disasters), claims history, and insurer underwriting practices.

Roofing Contractor Business Insurance Costs By Provider

Roofing contractor business insurance costs will vary greatly depending on the insurance carrier. Use the table below to find average costs across different providers.

Note: These estimates are based on average small business insurance costs for roofing contractors, typically including general liability, workers’ compensation, commercial auto, and property coverage. Actual premiums will vary depending on factors such as company size, number of employees, location, type of roofing work performed, claims history, and coverage limits.

What Factors Impact Your Roofing Contractor Insurance Costs?

Insurance premiums for roofing contractors are calculated based on the overall risk profile of the business. Underwriters consider services offered, location, property value, and claims history when setting rates.

Claims History

Frequent claims signal higher risk to insurers, which can drive up premiums. A clean record often qualifies contractors for discounts and lower rates.

Property Value And Equipment

High-value tools, machinery, and office equipment increase commercial property insurance costs. Many contractors also add cyber insurance endorsements to protect sensitive client data, which adds to premiums.

Type Of Services

Not all roofing projects carry the same risk. Contractors working on commercial buildings or hazardous job sites face greater liability exposure compared to those handling residential projects in safer environments.

Location

Where your business operates matters. Contractors working in urban, high-crime, or flood-prone areas often pay more for property and liability coverage, while suburban or lower-risk regions may benefit from reduced rates.

Size Of The Operation

The number of employees, square footage, and annual revenue all affect premiums. Larger crews face greater exposure to liability claims and higher workers’ compensation costs, especially when staff travel between job sites.

Policy Limits And Deductibles

Higher policy limits provide stronger protection but increase premiums. Choosing a larger deductible can lower monthly costs, though it raises your out-of-pocket risk when claims occur.

Optional Endorsements

Add-ons such as business interruption, cyber liability, or hired/non-owned auto coverage tailor protection to your firm’s needs but also increase overall costs.

Insurance Provider

Rates vary among carriers. Some specialize in construction or commercial risks and may offer better pricing or flexible options for roofing contractors. Comparing quotes across providers can help secure the best deal.

How To Lower Your Roofing Contractor Insurance Costs

Running a roofing business comes with plenty of expenses, but your insurance premiums don’t have to overwhelm your budget. While coverage is essential, there are practical ways to cut costs without sacrificing protection.

Raise Your Deductible

Opting for a higher deductible is one of the simplest ways to lower monthly premiums. Just ensure your company can comfortably cover the out-of-pocket amount if a claim arises.

Bundle Policies Together

Combining coverage often leads to savings. Many insurers offer a Business Owner’s Policy (BOP) that merges general liability and property insurance at a reduced rate. Adding workers’ compensation or tool insurance through the same provider can unlock additional discounts while streamlining paperwork.

Ask About Discounts

Insurers frequently reward loyalty and upfront payments. You may qualify for reduced rates by signing a multi-year agreement or paying your premium in full instead of monthly installments.

Build Safer Job Sites

Accidents and hazards can quickly drive up insurance costs. Regularly inspecting PPE, maintaining equipment, and enforcing safety protocols help reduce liability risks. Fewer incidents mean fewer claims, which lowers premiums over time.

Strengthen Your Safety Program

Workers’ compensation costs can be managed by focusing on employee safety. Training staff on fire safety, maintaining clear emergency exits, and practicing safe workplace habits reduces injuries. When fewer claims are filed, premiums stay lower.