What Insurance Does a Roofing Company Need?

Roofing Insurance Has to Match the Work

Your crews, trucks, tools, roofing methods, and contracts create different risks. Your insurance should match the work your company does.

Most roofing companies start by looking at four types of insurance:

• General liability
• Workers’ compensation
• Commercial auto
• Tools and equipment coverage

Some roofers may also need property insurance, higher liability limits, or bonds. The right mix depends on the business.

The policy matters more than its name. A company can have “general liability” and still have no coverage for a common roofing method. A subcontractor can hand you a certificate of insurance, then lose coverage before the job ends.

The examples below come from real court cases and government records. Each case turned on its own facts, state law, and policy language. Another claim may have a different result.

Start With Six Questions

Ask these questions before you shop for insurance:

1. Could your work hurt a customer or damage a building?
2. Could an employee or crew member get hurt?
3. Who owns and drives the trucks?
4. Where do you keep tools and materials?
5. Do you own or rent a shop or office?
6. What insurance does each contract require?

These answers show where your biggest risks may be.

1. General Liability

General liability may respond when someone says your business caused an injury or damaged property. For example, a falling tool could hurt a person below. A roofing crew could damage a window, wall, or other part of a building.

This policy may also address some claims that arise after the job is done. This is often called completed-operations coverage.

But general liability does not cover every roof leak or repair bill. A roofing policy may limit certain kinds of work. The policy may also exclude them.

A Fire Started During Torch-Down Work

Duxworth Roofing used torches to repair a leaking roof in New Orleans. A worker found a fire inside the building when the job was almost done. The building’s insurer said the torch work caused the fire. Read the court decision.

Duxworth had general liability insurance. But its policy excluded “Any and All Torch Down Roofing Operations.” A Louisiana court ruled that the insurer did not have to defend Duxworth or pay the covered part of the claim.

The cause of the fire was still in dispute. The court’s ruling applied to that policy and that case.

The lesson: A certificate that says “general liability” does not prove that torch-down work is covered. Check the exclusions.

A Policy Excluded Membrane Roofing

A&S Roofing worked on membrane roofs at three buildings in Oklahoma. The company said it had asked for insurance for all its roofing work. It also said membrane roofing was a regular part of its business. Read the court decision.

The policies still excluded damage tied to membrane roofing. A federal court ruled that the insurer did not have to defend A&S or pay the covered part of the claims.

The court did not decide whether A&S did bad work. It only decided the insurance dispute.

The lesson: Make sure the policy covers the roofing systems your crews install.

Ask Before You Buy

• Does the application list all our roofing work?
• Does the policy limit work by height?
• Does it cover our roofing systems and methods?
• Does it limit hot work or open-roof water damage?
• Does it cover work done by subcontractors?
• What does it say about work after the job is done?

A licensed insurance professional should answer these questions from the policy itself.

2. Workers’ Compensation

Workers’ compensation can help with job-related injuries and illness. State law decides when a business must carry it.

Rules can change based on the state and the type of worker. Owners, employees, and subcontractors may be treated in different ways.

Roofing has serious injury risks. Crews work high above the ground. They climb ladders, carry heavy loads, and walk on surfaces that may fail.

A 28-Year-Old Roofer Fell 40 Feet

In March 2023, five workers were replacing a commercial roof in Florida. A 28-year-old worker pushed a wheelbarrow full of debris across the roof. The roof broke under him. He fell about 40 feet onto concrete and later died. Read OSHA’s report.

OSHA said the employer failed to provide proper fall protection. OSHA also said the employer failed to guard roof openings and make sure the roof could hold the crew.

OSHA proposed $84,379 in penalties. The employer challenged the citations.

The report does not say whether a workers’ compensation claim or lawsuit followed.

The lesson: Insurance cannot replace fall protection. Safety comes first.

3. Subcontractors and Certificates of Insurance

Calling a worker a subcontractor does not settle the issue. The law may look at how the person works, who controls the job, who supplies the tools, and how the person is paid.

A certificate of insurance, or COI, is also limited. It gives a short report of coverage on a certain date. It is not the policy. It does not create coverage.

Every Company in the Chain Was Uninsured

Dionel Espino fell from a ladder while doing roofing work in Virginia. The person who hired him drove him to jobs, gave him tools, and paid him $200 per day. That person worked for another company, which worked for Modern Renovations. Read the court decision.

None of the companies had workers’ compensation coverage when Espino fell. Modern Renovations had let its policy lapse because it did not pay the bill. It renewed the policy after the injury.

Virginia officials found that Espino was an employee. They treated Modern Renovations as his legal employer. He received short-term disability payments and medical benefits tied to the injury.

This Virginia ruling does not set Colorado law.

The lesson: A chain of subcontractors may not shield the company at the top. The real work setup matters.

The COI Said Yes. State Records Said No.

BSB Construction had a COI for a subcontractor in New York. The COI appeared to show workers’ compensation coverage through June 2012. State records showed that the policy had been canceled in July 2011. The subcontractor kept working after that date. Read the court decision.

BSB paid the subcontractor $82,797. The insurer added $74,517 to the amount used to set the premium. After payments and credits, the court upheld an unpaid balance of $68,380.39.

The lesson: Do more than collect a COI at the start. Use a clear process to track coverage through the full job.

4. Commercial Auto

Roofers use trucks to move crews, tools, trailers, and materials. Commercial auto may address covered crashes involving company vehicles.

The details matter:

• Who owns each truck?
• Who drives it?
• Do workers use personal cars for company work?
• Does the company rent or borrow vehicles?
• Which trailers are listed?
• Does the company check driving records?

The policy’s list of vehicles, drivers, uses, and exclusions controls the coverage.

A Roofing Truck Crash Led to Years in Court

A Hudgins Roofing worker backed a company truck into Courtney Tully’s lane. The company agreed that its worker caused the crash while doing his job. Read the court decision.

Tully reported neck and back pain. She went through therapy, shots, nerve blocks, and other treatments. She said the pain hurt her work, exercise, and time with her children. The other side disputed how much of her condition came from the crash.

A jury awarded more than $2.3 million. An appeals court later threw out the award and ordered a new trial because key evidence had been left out. The award was not final.

The lesson: A simple move in a work truck can lead to a serious injury claim and years in court.

5. Tools, Trailers, and Materials

Roofing tools move all day. They may sit in a shop, truck, trailer, or jobsite.

One policy may not cover them in every place. The truck, trailer, loose tools, and roofing materials may need different forms of coverage.

Make a list of your property. Add serial numbers, receipts, photos, and normal storage places. Check the limits and theft rules in the policy.

Thieves Took a Trailer and $35,000 of Property

Police reported that thieves stole a trailer from Metro Roofing in Nova Scotia. The trailer held about $35,000 in tools and building materials. Read the report based on the police release.

The report did not say whether Metro Roofing had coverage or received a payment.

The lesson: Ask how the policy treats the trailer, tools, and materials before a theft stops the crew.

6. Property, Contracts, and Bonds

A roofer may own or rent an office, shop, yard, or warehouse. Commercial property insurance may address covered damage to the building or property kept there.

Some companies may qualify for a business owner’s policy, called a BOP. A BOP joins certain property and liability coverage. It does not usually include workers’ compensation or commercial auto. Not every roofing company will qualify.

Contracts can also require:

• Set liability limits
• Commercial auto coverage
• Workers’ compensation
• Extra liability limits
• Additional-insured endorsements
• Waivers of subrogation
• Bid, performance, or payment bonds

Ask insurance and legal professionals to review these terms before you sign.

Rain Caused Almost $390,000 in School Damage

A California school district hired Solano County Roofing to replace an elementary school roof. The contract told the roofer to protect the school from rain. It also required a performance bond. Read the court decision.

Rain entered the school during three days of work. It caused $389,968 in damage inside the building.

The court left the judgment against the bond company in place. It reversed the judgment against the roofer for a separate reason. The result came from that contract, bond, and state law.

The lesson: An open roof can expose a whole building. Plan for weather, temporary covers, and the contract terms before work starts.

Other Coverage to Review

Some roofing companies face other risks. They may need to review:

• Professional liability for reports, advice, or design work
• Cyber insurance for data and computer risks
• Employment practices coverage for certain worker claims
• Crime coverage for some kinds of theft or fraud
• Umbrella or excess insurance for higher liability limits

The need depends on the company and the policy.

What to Gather Before You Shop

Bring clear and correct facts.

Your business

• Annual sales and payroll
• Number of workers
• States where you work
• Work history and past claims

Your roofing work

• Residential and commercial work percentages
• New roofs, replacements, repairs, and service work
• Greatest working height and common roof pitch
• Roofing systems and installation methods
• Hot-work and safety rules

Your crews and property

• Employee duties
• Subcontractor costs and COIs
• Trucks, trailers, drivers, tools, and equipment

Your current coverage and contracts

• Current policies
• Loss runs
• Sample contracts
• Insurance rules from customers or general contractors

Good facts help an insurance professional describe the business correctly. They can also reduce problems during an audit or claim.

Common Questions

Do I need workers’ compensation if I have no employees?

State law and the real work setup control the answer. Rules for owners, subcontractors, and temporary workers can differ. Ask the state agency and a licensed professional.

Does general liability cover bad roofing work?

It depends on the claim and the policy. Fixing bad work may be treated differently from damage the bad work caused. The policy and its exclusions control the answer.

How much insurance does a roofing company need?

There is no one limit for every roofer. The answer depends on contracts, job size, payroll, trucks, property, and possible losses. A licensed professional can help review the limits.

What should I collect from subcontractors?

Roofers often review the subcontract, COI, and required policy endorsements. A COI does not change the policy or create coverage. Ask qualified insurance and legal professionals to review your process.

Match the Insurance to the Business

Start with the work your company does. List your people, subcontractors, trucks, tools, buildings, roofing methods, and contracts.

Then compare those facts with each policy’s limits and exclusions. The policy—not a website summary—controls coverage.

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