How To Choose The Right Roofers Insurance Policy For Your Business

Roofing work presents unique hazards, including working at heights, exposing interiors during tear-offs, and occasionally using open flames. The right Roofers Insurance package begins with Commercial General Liability (CGL) and builds upon other protections, ensuring that a single mishap doesn’t jeopardize your company or your clients.

Below, you’ll find a simple process to choose coverage that fits how you actually roof.

Why Roofers Insurance (Built on CGL) Matters

CGL helps cover third‑party bodily injury, property damage, and personal/advertising injury, plus defense costs—often from the moment a suit is filed, even if allegations are groundless (subject to policy terms). That “duty to defend” is a core feature of standard CGL forms. 

CGL isn’t always required by state law, but owners, GCs, and permitting agencies routinely demand it, along with proof of workers’ comp and commercial auto when you run vehicles. 

Cost baseline (2025): For roofing companies, recent benchmarks indicate that GL costs approximately $389/month and BOP costs approximately $567/month for a small firm; workers’ compensation often incurs higher costs due to the risk of falls. Your price depends on state, payroll, methods (e.g., torch), and loss history. 

Evaluate Your Roofing Risks

Use your scopes and job methods to set priorities:

• At‑height exposure & falling objects. OSHA fall protection is required at 6 ft and above on low‑slope and steep roofs—underwriters look for programs that meet 29 CFR 1926.501. Strong controls can help with pricing and eligibility.
• Open‑roof exposure. Many CGLs add open‑roof limitations that restrict coverage for interior water damage during tear‑offs unless strict precautions are met. Know your wording.
• Hot‑work/torch. Carriers often require formal hot‑work permits and training (e.g., NRCA CERTA). NFPA 51B guidance includes a minimum 60‑minute fire watch with additional monitoring as conditions warrant.
• Coatings/overspray/fumes. Standard CGL has an absolute pollution exclusion; add Contractors Pollution Liability (CPL) for coatings and solvents.
• Design/consulting (design‑assist, specs). These professional services are usually not covered by CGL; consider Contractors Professional Liability (E&O), typically claims‑made.

Pick The Right Coverage Limits

A common starting point for contractors is $1M per occurrence / $2M aggregate on CGL; owners and public jobs may require higher limits and an umbrella. Insurers price higher limits with Increased Limit Factors (ILFs), so premiums rise in steps as limits increase.

Tip: Align limits with contract language and typical project values. For large or complex projects, owners may stipulate higher limits or project-specific excess coverage. 

Understand Policy Types & Roofing Add‑Ons

• CGL (foundation). Third‑party BI/PD + personal/advertising injury; defense provided per the form.
• BOP or CPP. Bundles GL with property and business interruption coverage (and often saves money vs. separate policies), but still excludes pro services, auto, and WC.
• Workers’ Comp. In most states, once you hire employees, roofers are closely scrutinized.
• Commercial Auto (ISO CA 00 01). Needed for trucks and service vehicles—GL won’t cover auto liability.
• Inland Marine (Contractors’ Equipment/Tools). Covers tools and mobile equipment at jobsites/in transit.
• CPL (pollution). Fills the CGL pollution gap for overspray/fumes/runoff.
• E&O (Contractors Professional Liability). For design/oversight errors, claims‑made with retro dates and tails to manage.

Roofing‑specific endorsements to review closely (and negotiate):

• Open‑Roof endorsements/limitations. Some exclude rain damage during tear-off unless explicit conditions are met (tarping, constant attendance, time caps). 
• Hot‑work/torch conditions. Many carriers require permit procedures and CERTA training evidence.
• Additional Insured (AI) forms. Owners/GCs often require AI for ongoing ops (CG 20 10) and completed ops (CG 20 37); post‑2013 ISO versions narrowed terms—understand what you’re giving and getting.

Compare Providers & Quotes (What To Look For)

• Coverage, not just price. A low premium with tight open- or hot-work exclusions can cost significantly more at claim time.
• Defense provisions. Confirm duty to defend language and whether defense is inside or outside limits (E&O often erodes limits).
• Financial strength. Choose carriers with solid AM Best Financial Strength Ratings (A‑ or better is a common threshold). Verify ratings and understand the scale.
• Claims service & certificates. You’ll need fast COI turnaround with proper AI/Primary & Non‑Contributory/Waiver wording for bids and permits.
• Market alternatives. When traditional markets are tight, some trades consider Risk Retention Groups (RRGs)—member‑owned liability insurers governed under the federal LRRA, which know they’re outside state guaranty funds.

What Drives Your Premium (Big Levers)

• Location & legal climate; job mix (steep vs. low‑slope; re‑roof vs. new); methods (torch/hot‑work; coatings).
• Payroll & class codes (WC is payroll‑rated; GL uses ISO class exposure to match premium to risk).
• Claims history & safety program (OSHA‑compliant fall protection, hot‑work permits, CERTA).
• Limits/deductibles (ILFs raise price as limits rise).

Choose Deductibles & Payment Structure

Higher deductibles can reduce premiums but raise your out‑of‑pocket on small losses—pick a figure your cash flow can absorb. Many carriers offer discounts for annual pay versus installment billing; BOP/CPP bundling may also lower total spending. 

Final Checklist Before You Bind

Checklist	Why it matters
Limits validated	Meet contract, lender, or permit requirements; plan for an umbrella policy if needed.
Endorsements identified	Confirm AI/PNC/Waiver, open‑roof, hot‑work, CCC, your‑work/that‑particular‑part terms. Lovullo
Exclusions read	Pollution, pro services, auto, cyber—fill with CPL, E&O, Auto, Cyber. IRMI
Insurer vetted	Check AM Best rating and size category (FSC). A.M. BestAM Best
Broker support	Ensure that fast COIs and contract reviews are available for help.
Annual review plan	Update for new crews, methods (e.g., coatings), or bigger contracts.

Frequently Asked Questions

What’s the difference between occurrence and claims‑made policies?

Occurrence (typical for CGL) responds to incidents that happen during the policy term, even if the claim is filed later. Claims‑made (common for E&O/CPL) responds when the claim is made (and sometimes reported) while the policy is active—mind retro dates and tails. 

Can I add waivers of subrogation and other contract terms?

Yes—CGL can endorse Waiver of Subrogation, Additional Insured, and Primary & Non‑Contributory status to satisfy typical construction contracts (often via ISO CG 20 10/20 37). 

How do I judge an insurer’s financial strength?

Check AM Best (FSR scale from A++/A+ “Superior” to lower grades). Use AM Best’s public rating search and guides to interpret the letters—not just the marketing.

Are torch hazards treated specially by insurers?

Often, yes. Expect hot‑work permit requirements and may be asked for NRCA CERTA training documentation; follow NFPA 51B fire‑watch guidance (≥ 60 minutes, with additional hours as conditions warrant). 

Do I need pollution or professional coverage?

If you spray/apply coatings or provide design/consultation services, consider CPL and E&O—CGL generally excludes pollution and professional services. 

Secure The Right Coverage For Your Roofing Business

Choosing smart coverage isn’t just about price—it’s about fit: scopes, methods (open‑roof/torch/coatings), contract terms, and your appetite for risk. Start with well‑structured CGL, add WC, Auto, Tools, and—where needed—CPL, E&O, Umbrella. Verify the insurer’s strength, read endorsements, and review them annually as your projects grow.

Ready to tailor a program for your crews and jobs? Visit Roofers Insurance US to explore your options and get quotes that match real‑world roofing risks.