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As a property owner, hiring a roofing contractor is a significant investment. You want to ensure that your contractor is properly insured to protect yourself from potential liabilities. Roofing work can be dangerous, and accidents can happen even with the most experienced contractors. That’s why it’s crucial to understand what kind of insurance should a roofing contractor have. In this article, we’ll discuss the essential insurance policies every roofing contractor should carry and why they’re important.
General Liability Insurance
General liability insurance is the most basic and essential type of insurance for roofing contractors. This policy covers third-party accidents, property damage, and bodily injury that may occur during a roofing project. For example, if a roofing contractor accidentally damages your property or if someone gets injured due to their work, general liability insurance will cover the costs associated with these incidents.
Coverage | Typical Limits |
Bodily Injury & Property Damage Liability | $1,000,000 per occurrence / $2,000,000 aggregate |
Products & Completed Operations | $1,000,000 aggregate |
Personal & Advertising Injury | $1,000,000 per occurrence |
It’s important to note that general liability insurance doesn’t cover everything. It typically excludes coverage for damage to the contractor’s own equipment, intentional acts, and professional errors.
Workers’ Compensation Insurance
Roofing work is inherently dangerous, with a high risk of falls and other accidents. That’s why workers’ compensation insurance is crucial for roofing contractors. This policy covers medical expenses, lost wages, and other costs associated with work-related injuries or illnesses.
In most states, workers’ compensation insurance is mandatory for businesses with employees. However, even if it’s not required in your state, it’s still a wise investment. Without workers’ comp, you could be held liable for an injured employee’s medical bills and lost wages.
Commercial Auto Insurance
Roofing contractors often use vehicles to transport materials, equipment, and workers to job sites. That’s why commercial auto insurance is another essential policy. This insurance covers accidents and damages involving the contractor’s vehicles used for business purposes.
It’s important to note that personal auto insurance policies typically exclude coverage for business use. So, if a contractor uses their personal vehicle for work without commercial auto insurance, they may not be covered in the event of an accident.
Tools and Equipment Insurance
Roofing contractors rely on expensive tools and equipment to do their job. From ladders and scaffolding to nail guns and roofing materials, these tools are essential but also costly to replace if damaged or stolen. That’s where tools and equipment insurance comes in.
This policy covers the cost of repairing or replacing damaged or stolen tools and equipment. Some policies even cover rental costs for temporary replacements while damaged items are being repaired.
Professional Liability Insurance (Errors & Omissions)
Professional liability insurance, also known as errors and omissions (E&O) insurance, covers claims related to professional negligence or errors. While not as common as the other policies mentioned, it’s still an important consideration for roofing contractors.
For example, if a contractor gives incorrect advice or makes a mistake that causes financial harm to the client, professional liability insurance would cover the costs associated with these claims.
The Importance of Proper Insurance Coverage
Now that we’ve covered what kind of insurance should a roofing contractor have, let’s discuss why it’s so important. Proper insurance coverage protects both the contractor and the property owner in the event of accidents, damages, or mistakes.
Without insurance, the costs associated with these incidents can be devastating. For example, if an uninsured contractor causes significant damage to your property, you may have to take legal action to recover the costs. This can be a lengthy and expensive process.
On the other hand, if a contractor has proper insurance coverage, these costs will be covered by their policies. This gives you peace of mind knowing that you’re protected financially if something goes wrong.
Verifying a Contractor’s Insurance Coverage
Before hiring a roofing contractor, it’s essential to verify their insurance coverage. A reputable contractor should be willing to provide proof of insurance upon request. This typically includes a Certificate of Insurance (COI) that lists their policy types, coverage limits, and effective dates.
It’s also a good idea to contact the insurance company directly to confirm the contractor’s coverage. This helps ensure that the COI is accurate and up-to-date.
Conclusion
In conclusion, what kind of insurance should a roofing contractor have is a critical question every property owner should ask before hiring a contractor. At a minimum, roofing contractors should carry general liability insurance, workers’ compensation insurance, commercial auto insurance, and tools and equipment insurance. Professional liability insurance may also be necessary depending on the scope of their work.
Proper insurance coverage protects both the contractor and the property owner from potential financial losses associated with accidents, damages, and mistakes. By verifying a contractor’s insurance coverage, you can have peace of mind knowing that you’re protected if something goes wrong.