Roofers Business Insurance

Roofing is the third deadliest occupation in the United States. According to the Bureau of Labor Statistics, roofing contractors suffered 134 workplace fatalities in 2023, and falls, slips, or trips caused about 82% of them. Those numbers matter when you’re buying insurance because they explain why roofing premiums are among the highest of any trade. Workers’ comp for class code 5551 (the rating category insurers use for all roofing work) can run $10 to $15 per $100 of payroll in most states.

Why Do Roofing Businesses Need Insurance?

Falls from elevation caused approximately 389 construction deaths in 2024, according to BLS data. Roofing contractors accounted for 12.4% of all fatal workplace falls nationwide in 2023. Those are industry-wide numbers, and they translate directly into the claims data that insurers use to price your policies.

Without general liability, a single dropped tool that dents a homeowner’s car or injures a bystander could result in a lawsuit that wipes out a small company. I have seen roofers lose everything over a claim that would have cost them $200 a month to insure against.

Workers’ comp is legally required in nearly every state once you hire your first employee. Roofing injuries frequently involve broken bones, spinal damage, and traumatic brain injuries from falls, and the medical costs add up fast. A single fall claim can easily run into six figures.

There is also a practical business reason. Most GCs will not let you set foot on a job site without a Certificate of Insurance showing at least $1 million in general liability and proof of workers’ comp.

What Insurance Do Roofing Companies Need?

Not every policy template you see online applies to roofing the same way. Some coverages are non-negotiable for roofers, and others are situational depending on how you operate.

General Liability Insurance

This covers third-party bodily injury and property damage claims that arise from your roofing operations. When a shingle strip falls off the roof and cracks a homeowner’s windshield in the driveway, general liability pays for the repair and any legal costs if they sue.

For roofers specifically, the completed operations portion of this policy matters a lot. If a roof you installed two years ago starts leaking because of a workmanship error, and the resulting water damage ruins the homeowner’s ceilings and floors, completed operations coverage handles that claim. This is actually the coverage that replaces what many people incorrectly think they need E&O for.

Most GC contracts require $1 million per occurrence and $2 million aggregate at a minimum. Commercial projects sometimes ask for $2 million per occurrence.

Workers’ Compensation Insurance

Roofing falls under NCCI class code 5551, which carries one of the highest base rates of any occupation. Depending on your state, expect to pay between $10 and $22 per $100 of payroll. For context, office workers pay less than $0.25 per $100.

According to CDC/CPWR data, roughly 70% of fatal falls in construction happen to workers at companies with fewer than 10 employees. If you run a small crew, you are statistically in the highest-risk group. Workers’ comp covers medical bills, rehabilitation, lost wages, and death benefits.

Something that catches a lot of roofing contractors off guard is uninsured subcontractor payroll. If you use subs who do not carry their own workers’ comp, your insurer can add their payroll to your policy at audit time and charge you the 5551 rate on it. I have talked to roofers who got hit with five-figure audit bills they never expected. Always collect current certificates from your subs.

Inland Marine Insurance

Standard commercial property policies usually stop covering your tools and equipment once they leave your main location. Inland marine picks up where property insurance ends, protecting nail guns, compressors, generators, ladders, and roofing-specific equipment like hot tar kettles while they are in transit or sitting on a job site overnight.

Theft from job sites is a real problem for roofers. Equipment left on a roof or in an open truck bed is an easy target, and replacing a commercial-grade compressor or generator out of pocket is not cheap.

Commercial Auto Insurance

Your personal auto policy will not cover an accident that happens while your crew is hauling shingles to a job site. If you own trucks or vans used for work, you need commercial auto. It covers vehicle damage, bodily injury to others, and medical payments if your driver is at fault.

Most roofing companies operate at least one or two trucks. If your vehicles are titled to the business, personal auto policies will not pay out on a claim, and you will be stuck covering the damages yourself.

Business Owner’s Policy (BOP)

A BOP bundles general liability with commercial property coverage at a discounted rate compared to buying them separately. If you have a physical office, warehouse, or storage yard, a BOP protects the building and its contents from fire, theft, and weather damage while also maintaining your liability coverage.

Not every roofing operation qualifies for a BOP. Some carriers consider roofing too high-risk for their BOP programs, so you may need to purchase general liability and property coverage as separate policies. It is worth checking, though, because the savings can be meaningful when you do qualify.

Umbrella Insurance

Roofing claims can get expensive fast. If a worker on your crew drops a tool off a three-story commercial building and seriously injures someone walking below, the medical bills and lawsuit could exceed your $1 million GL limit. Umbrella coverage sits on top of your GL and commercial auto policies and pays the balance up to its own limit.

I think umbrella insurance is closer to a necessity than an optional add-on for roofing contractors. The types of accidents that happen on roofs tend to produce serious injuries, and serious injuries mean large claims. A $1 million umbrella policy is relatively inexpensive compared to the exposure it covers.

Hired and Non-Owned Auto (HNOA) Insurance

If an employee ever uses their personal vehicle for a work errand and causes an accident, HNOA protects your business from the resulting liability claim. This is cheap coverage and worth adding if your crew members occasionally drive their own cars to pick up supplies or drop off paperwork.

Commercial Property Insurance

If you own or lease a building for your office, storage, or workshop, commercial property insurance covers the structure and its contents against fire, theft, vandalism, and certain weather events. For roofing companies that store significant material inventory or expensive equipment indoors, this coverage prevents a single fire or break-in from shutting down operations.

Surety Bonds

Many states require roofing contractors to carry a surety bond as a condition of licensing, and the required amounts vary a lot by state. Florida requires a $5,000 license bond. Illinois requires $10,000 for a limited license or $20,000 for an unlimited license. California requires a $15,000 contractor license bond. Some Texas municipalities go as high as $100,000.

A surety bond is not insurance. It is a financial guarantee that you will fulfill your contractual and licensing obligations. If you fail to complete a job or violate licensing rules, the bond pays the harmed party. You then owe the surety company that money back. The annual cost is typically 1% to 5% of the bond amount. A $15,000 bond might cost you $150 to $750 per year, depending on your credit score.

Beyond license bonds, some commercial projects and government contracts require bid bonds, performance bonds, or payment bonds before you can even submit a proposal.

Cheapest Roofing Business Workers’ Compensation Insurance

NEXT Insurance offers the lowest average rate for roofing workers’ comp at approximately $9,408 per year. Keep in mind that roofing class code 5551 carries one of the highest base rates in the NCCI manual, so these figures reflect that higher risk profile.

Cheapest Roofing Business General Liability Insurance

Thimble offers the lowest estimated rate for general liability coverage, averaging roughly $2,495 annually for roofing contractors.

These estimates assume a standard policy limit of $1 million per occurrence and $2 million aggregate for a residential roofing business with moderate revenue. Your actual premium will shift based on your location, subcontracting percentage, and whether your policy includes height-exposure restrictions.

Cheapest Roofing Business Business Owner’s Policy

Thimble provides the lowest BOP rate for roofers, with annual premiums starting around $3,845.

Not all carriers will write a BOP for roofing operations. High-risk trades sometimes get excluded from bundled programs, which means you would need to purchase GL and property coverage as separate policies. Ask your agent whether you qualify before assuming the BOP rate applies to you.

How Much Does Roofing Business Insurance Cost?

On average, roofing companies spend $329 a month on general liability insurance. Workers’ comp is typically the largest single line item, and it can easily cost more than all your other policies combined.

The E&O figure is included in the table because some roofing companies that also offer design or consulting services do carry it. If you only perform installation and repair work, you can likely skip that line item.

How Is Your Roofing Business Insurance Cost Calculated?

Your workers’ comp class code is the starting point for your most expensive policy. NCCI class code 5551 covers all types of roofing. In most states, the base rate falls between $10 and $15 per $100 of payroll. In high-cost states like Florida, that rate can reach $18 to $22 per $100.

Your Experience Modification Rate (EMR) is the next big factor. Think of it as your company’s safety scorecard. Insurers compare your actual claims history to what they expect from businesses your size in the roofing trade, and they assign you a number. A 1.0 means you are average. Below 1.0 earns you a discount, and above 1.0 adds a surcharge.

For roofers, even a 0.10 difference in EMR can mean thousands of dollars in premium changes. Most GCs will not hire subcontractors with an EMR above 1.0, so this number affects your ability to get work just as much as it affects your insurance costs.

Whether you focus on residential or commercial projects matters too. Commercial roofing often requires higher coverage limits, and the projects tend to be larger, which insurers view as increased exposure. A roofer doing $2 million in commercial work annually will pay more than one doing $500,000 in residential re-roofs.

Location affects pricing because states regulate workers’ comp differently, and some areas have higher claim costs due to weather, litigation rates, or local building codes. Florida, California, and New York tend to have the most expensive roofing insurance markets.

Your claims history over the past three to five years directly influences what carriers are willing to offer you. A clean record keeps your options open and your premiums down. Even one large claim can follow you for years.

How Do You Get Roofers Business Insurance?

Start by confirming your state’s licensing and bonding requirements. Many states will not issue a roofing contractor license without proof of both general liability and workers’ compensation coverage already in place, plus a surety bond. Getting your insurance squared away before you apply for the license saves you from having to go back and forth with the licensing board.

When you request quotes, have your payroll numbers, number of employees, annual revenue, and three to five years of loss history ready. Carriers also want to know whether you do residential work, commercial work, or both, and what roofing materials you typically install. For roofing specifically, some carriers ask about your maximum working height, whether you do steep-slope or flat-roof work, and what percentage of your revenue comes from new construction versus repairs. The more detail you provide upfront, the more accurate your quote will be.

Get quotes from at least three carriers. Roofing is a specialty risk, and not all carriers write it. I have seen standard-market insurers flat-out decline roofing applications, which is why working with an independent agent who has access to surplus lines markets is usually the fastest path to competitive pricing for roofers.

Once you pick a policy, your carrier will issue a Certificate of Insurance. Keep copies of your COI accessible at all times because GCs, property managers, and homeowners will ask for it before every job.

Mark your renewal date on your calendar. Roofing insurance premiums change every year based on your updated payroll, revenue, and claims history. I review my recommended carriers annually, and I suggest you do the same. Renewal is the easiest time to catch classification errors, remove coverage you no longer need, or adjust limits as your business grows.