The Reality of Roofing Insurance
Roofing is classified as extra-hazardous by every insurance carrier in the country. Falls from height account for more construction fatalities than any other cause, and roofers spend their workdays at elevation. This reality shapes every aspect of your insurance program.
Why Your Premiums Are Higher
A roofing contractor typically pays three to five times more than a painter or flooring installer for similar coverage levels. Here's what drives that premium.
Height Equals Severity
When roofers get hurt, they get hurt badly. A fall from a single-story roof can cause permanent disability. Multi-story falls are frequently fatal. Carriers price this severity into every policy.
Property Damage Potential
Roofing work exposes the entire structure below. An incomplete roof during an unexpected rain creates interior damage throughout the building. Torch-applied roofing creates fire hazards. The potential for total-loss scenarios is real.
California's Extreme Conditions
Working in California's inland valleys and desert regions during summer heat adds heat illness exposure. Santa Ana winds can catch exposed roofs unprepared. Your insurance rates reflect these environmental challenges.
Coverage You Actually Need
General Liability
Minimum limits of $1 million per occurrence and $2 million aggregate are baseline. Many general contractors require $2 million per occurrence or higher from roofing subs. Products-completed operations coverage is essential because roof failures often manifest months or years after installation.
Workers' Compensation
Classification 5551 carries some of the highest rates in construction. Expect to pay $18 to $28 per $100 of payroll, sometimes more depending on your experience mod and carrier.
Commercial Auto
Ladder racks, material transportation, and crew transportation all require commercial coverage. Multi-vehicle discounts can help control costs for larger fleets.
Inland Marine
Compressors, nail guns, generators, and specialized equipment need protection. Basic commercial auto doesn't adequately cover tools and equipment.
Reducing Your Costs
Documented Safety Programs
Carriers want to see formal fall protection training, documented use of guardrails and personal fall arrest systems, proper ladder safety protocols, and heat illness prevention programs specific to California conditions. Written programs with attendance records and regular updates signal lower risk.
Quality Equipment and Practices
Using guardrails and safety nets where feasible, personal fall arrest systems consistently, proper staging and access equipment, and following OSHA requirements demonstrates the commitment that carriers reward.
Employee Management
Background checks, drug testing programs, and experience requirements for new hires all reduce the likelihood of claims. Carriers notice these practices.
Claims Management
Prompt incident reporting, return-to-work programs for injured workers, and an overall culture that treats safety as non-negotiable improve your experience mod over time. This is the most sustainable path to lower premiums.
Working with General Contractors
Roofing subcontractors face additional requirements when working under GCs. Expect to provide higher limits than your standalone policy might require. Additional insured endorsements extending coverage to the GC and project owner are standard. Primary and non-contributory language and waivers of subrogation appear in virtually every commercial contract.
Confirm your policy can accommodate these requirements before bidding jobs. Discovering at contract signing that your carrier won't provide required endorsements creates expensive problems.
Common Questions
Why is my roofing insurance so expensive compared to other trades?
You're in an extra-hazardous classification. Falls are frequent, severe, and expensive. Property damage potential is high. Carriers charge accordingly.
Can I get better rates by only working on single-story buildings?
Some carriers offer lower rates with maximum height restrictions. If your business model allows this limitation, it's worth exploring.
What if I do siding or gutter work in addition to roofing?
You may be able to split classifications if you maintain separate payroll records for different work types. This can provide savings on the lower-risk portions of your operation.