Roofing Contractor’s General Liability Insurance
Roofing contractors face higher risks and are exposed to unique losses that differ from most other trades.
Roofing Contractors require specific endorsements to protect their business from catastrophic loss.
At PBIB out goal is to provide you coverage to protect your business from the common causes of loss associated with your trade.
Speak with a licensed agent: (833) 201-5035 Monday to Friday, 8am-8pm ET
What are the greatest loss exposures for Roofing Contractors?
#1 Course of Roofing operation - Water Damage from rain
Also known as “Open Roof Damage”. This is the damage that occurs to the property while you are performing the roofing of the building prior to the completion of the roof. This is one of the more common types of losses a Roofing Contractor will encounter, resulting in medium to severe loss damages to the property. An example: During a roofing job, a freak storm hits, and your tarping gets blown off, thus damage occurs.
How to reduce exposure and chance of loss?
- Keep your eye on the weather through a reliable weather app and never open a roof it there is a 20% or greater chance of rain.
- Always have a tarp and tarping materials ready at the project site.
- Always tarp the roof at night.
- Only open a portion of the roof that you can complete in the same day.
#2 Fire Damage - Hot Tar or Torch-Down Operations
Fire Damage as a result of hot work is the most severe loss that a roofer can encounter. Often times the entire structure will be lost due to fire.
How to reduce exposure to fire loss?
- Clean area of work of any sawdust or chemical that could easily combust.
- Perform overwatch for 3 hours after the completion of any hot work.
- The overwatch employee should have a 15-pound fire extinguisher, visual and physical access to the substructure below where the hot work was performed.
- Overwatch needs to actively inspect the areas of the structure above and below where the hot work was performed to watch for any flare-up.
#3 Water Intrusion - Post Roofing damages
How to reduce exposure and loss? 1) Good roofing practices keep these types of losses to a minimum, along with fast reactions, prevention, proper sized flashing, paperweights and lapping per code or greater. 2) Be sure to keep close communications with all client’s whose roof has not been tested by rain, perform a visual site visit to check for leaks. Your customer will love you for it, which may result in a favourable review or referral! 3) If you’re notified of a leak, immediately go to the customer’s property to tarp the roof. Begin water mitigation with your manpower if necessary.
#4 Negligence during construction, that results in damages
Negligence defined; “Failure to take proper care in doing something”.
As a roofer how does negligence affect me?
Negligence can be: missing some roofing nails on the ground that result in a personal injury, penetrating a water or gas line while performing roofing, improperly loading material on a roof resulting in damage to the structure, or failure to follow codes and regulation related to flashing, paperweight, recommending lapping, fastening of all roofing system components.
How to reduce losses due to negligence?
1) Good roofing practices are what keep these types of losses to a minimum.
2) Know the code and regulation for the area where you are working.
3) Check the work of your employees or subcontractors, make them aware, of the proper local code and regulations.
4) Check the materials for compliance prior to installation. A simple error from the supplier can lead to a negligence claim.
What affects your insurance pricing?
Losses within the last 5 years
The underwriter is looking for a reason to offer you a policy, at favourable terms. More years’ experience is looked on favourably when pricing a policy. Years in business is weighted more heavily as loss history determines if an insured is eligible for a program.
Years in Business
Your “Years in Business” though similar to your “Overall Years of Trade Experience” carry a lot more weight in the pricing of your policy. The Underwriter’s look at your years of experience coupled with losses, to determine if you’re are a good risk for the carrier to provide coverage for. Years of successful operation of your business will put MONEY in your pocket when it comes time to renew your policy, not to mention the cost of claims in dollars and reputation of your company.
Type of Work Performed
One of the main components of pricing a policy is the type of work performed. Insurance and certain trade organizations maintain records of loss history based on the trade, class and state where the work is performed. Other components of the type of work is the size, scope and growth of the company.
The underwriter’s logic; is they are looking for a company that stays within a certain size and scope of work and do not have growth year to year greater than 20%.
An underwriter will consider the following when pricing a policy:
1) Is the insured staying within his trade, or is he expanding outside his successful experience base of knowledge?
2) Is a company growing too fast, taking on too much work? The result of growing too fast is a decrease in the quality of work, more errors occur because the growth of work has exceeded the ability of the company to effectively manage the projects and employees. Additionally, new employees may be untested, and these conditions may lead to losses.
What are the insurance needs of a Roofing Contractor?
General Liability Insurance
General liability insurance often called business liability insurance and commercial liability insurance provides coverage for your business against claims of bodily injury
- property damage
- completed products
- personal and advertising injury
- medical expenses
Why you need General Liability Insurance?
General liability insurance gives you the peace-of-mind that your business assets are protected against risks or unforeseen events. If a third-party alleges property damage, injury, or bodily harm, you won’t have to worry about your construction business assets being depleted by medical bills, court costs, settlements, or judgements.
In the high-risk construction industry, safety and protection are part of the job. General liability insurance is one way you can protect your business and keep your assets where you want them. You work hard to build your business. General liability insurance works hard to protect it.
This section explains what our business general liability insurance offers. You should consider general liability insurance coverage if you or your employees:
Interact with clients face to face – If you visit a client’s place of work, or clients visit yours
Use third-party locations for any business-related activities – For example, contractors should make sure that they’re covered with contractor business insurance.
Are required to have general liability insurance before entering into a contract
General Liability Insurance policy coverage
What is covered?
- Bodily Injury
- Damage to third party property
- Personal injury
- Advertising injury
- Medical expenses
- Defense costs (On covered claims)
- Actions of your employees
What is not covered?
- Your property
- Injury to you or your employees
- Professional services
- Workers compensation
- Intent to injure
- Coverage outside the policy period
- Known claims prior to the start of the policy
What Does Workers’ Comp Cover? In the construction industry, workers compensation claims come in every day. If one of your employees is injured or becomes ill as a result of their job, workers’ comp benefits cover the costs of getting them well and back to work, including:
- Medical expenses
- Lost wages
- Legal fees, in the event of a lawsuit
- Disability benefits
What Does Workers' Comp Cover?
In the construction industry, workers compensation claims come in every day. If one of your employees is injured or becomes ill as a result of their job, workers’ comp benefits cover the costs of getting them well and back to work, including:
- Medical expenses
- Lost wages
- Legal fees, in the event of a lawsuit
- Disability benefits
Workers’ compensation doesn’t just benefit your employee, it also protects you from financial losses in the event an employee injury becomes a lawsuit. You can get your employees the care they need to get back to work while protecting your business from headaches and costly lawsuits.
In the construction industry, your employees risk their safety simply by showing up for work. Prevent accidents from happening by emphasizing a culture of safety and be prepared for accidents with workers’ compensation insurance so you can take care of the people who work hard for you.
General contractors and project owners can protect their investments in a construction project during the course of construction with the right contractor’s insurance policy in place.
Contractors and construction professionals rely on their autos to get the job done. Whether you’ve got a personal vehicle that doubles as your work truck or an entire fleet of autos that your construction business owns, contractor commercial auto can protect your vehicles from the risks of the road.
You may need to consider commercial auto coverage if :
- Your business owns or leases any vehicles
- There are any vehicles titled or registered to your business
- You use your vehicle as your primary work vehicle
- Any employees or non-listed drivers use your vehicle on a regular basis
- Any of your vehicles have ladder racks, permanent toolboxes, or other equipment installed to support your business activities
The Right Commercial Auto Coverage at the Right Price
Let us find you the perfect solution to cover your work vehicles today, from the toolbox on your favorite truck to every auto in your company’s fleet.
Tools & Equipment Coverage
How to reduce exposure to fire loss?
Clean area of work of any sawdust or chemical that could easily combust. Perform overwatch for 3 hours after the completion of any hot work. The overwatch employee should have a 15-pound fire extinguisher, visual and physical access to the substructure below where the hot work was performed. The employee should actively inspect these areas and watch for any flare up.
A commercial property policy is purchased to cover damage to contractor’s own buildings, office contents, and most other personal property that it owns. A commercial property policy can also cover loss of income or increase in expenses that result from insured damage.
Property Insurance Coverages include:
- The building that houses your business, whether owned or rented
- All office equipment, whether items are owned or leased
- Fundamental company documents
- Inventory kept in the premises
- Fence and landscaping
- Signs and satellite dishes
- Business Income Coverage
- Employee Dishonesty
- Equipment Breakdown
Protecting your business means defending yourself against the fiscal risk of lawsuits and claims. For many businesses, one single lawsuit could be financially disastrous.
A contractor’s license bond is a legal obligation that guarantees you’ll perform your work according to your contract while adhering to the rules and regulations of your contractor license.
A license bond is used to obtain or maintain your contractor license. A license bond is required in most states and is your guarantee that you won’t violate any state law regulations.
Bid bonds keep the bidding process fair for everyone by guaranteeing that the successful bidder will enter the contract and will provide all necessary performance and payment bonds. A bond claim would cover the difference between the cost of the low bid to the next bid.
When bidding on a public works project, a bid bond is typically required as a part of the bidding process. This bid bond is 20% of the bid amount on the Federal projects and varies from 5-20% on other public works bids.
A performance bond is a surety bond that guarantees to the oblige that the principal will successfully complete a project according to the agreed upon terms and conditions.
If the contractor fails to complete the project, the surety company will step-up and complete the project itself to fulfill the contract. The surety company can hire a separate contractor to complete the contract but will not pay more than the limit of liability stated in the bond. If the surety company suffers a loss they will seek reimbursement from the contractor. A performance bond is not insurance.
A payment bond is a surety bond that guarantees the client that if the contractor fails to pay its subcontractors and/or material suppliers on the project for which the bond was purchased, the surety company will make the payments up to the amount agreed upon for the bond. This guarantees a lien-free project.
There are a lot of accidents that may occur while working on a construction project. Halfway through a remodel, an unexpected fire destroys the work you’ve completed or maybe a flash storm damages the materials you’re keeping on a project site. The tools and equipment you’re storing on-site are stolen and your completed work is vandalized. In all of these instances, you’ll face a loss. And these losses may not be covered by your traditional property insurance policy.
Builders risk insurance protects you from the incidents you can’t plan for and helps you recoup your losses when the unexpected strikes.
What Does Builder’s Risk Cover?
When you have a builder’s risk policy covering your construction project, you’re covered against losses which may include:
- Theft of tools and equipment onsite
- Fire damage to a structure in progress
- Structural damage due to weather events
- Vandalism to a structure in progress
Builders risk insurance reimburses your business for losses if thieves steal copper wire or tools from your project site. It covers the cost to repair or rebuild if a fire or an extreme storm damages your project. Builders risk may also cover the cost of cleanup and clearing away debris so you can get back to work without delay.
Protect your Jobsite Materials with an Installation Floater.
Installation Floaters cover specific materials / items that a contractor is planning to install. This covers either all risks or specific sources of losses for materials or equipment specifically named in the policy. We can help you add an Installation Floater to your Builder’s Risk policy.
One of the biggest risk’s contractors face is theft of their tools, equipment, machinery or materials. Don’t leave your assets defenseless to face that risk without adequate protection. Contractors can safeguard themselves from financial loss by protecting the smaller assets that help get the job done with the right insurance coverage.
Why do I need an Excess Insurance Policy?
If a claim exceeds your underlying policy limit, you will have to pay the difference yourself. Could your construction business weather a $1M difference between a costly claim and your existing policy limit? With excess coverage, you don’t have to worry about a big incident depleting your business assets.
Excess insurance is sold in $1 million dollar increments, so you can extend the limits of your existing policies to a comfortable amount of coverage. The policy premiums for excess insurance are surprisingly affordable. Don’t leave the security of your business to chance; extend your contractor insurance coverage and fortify your defense with umbrella/excess insurance.
Excess insurance extends over your existing underlying insurance policies, primarily general liability, and for additional premium you can have it extend over your auto, work comp and other policies.