Starting a roofing business can be an exciting venture full of promise and potential. But don’t overlook insurance amid the flurry of tools, contracts, and roofing materials. In particular, understanding the nuances of general liability insurance is crucial for your roofing company’s protection and longevity.
In this guide, we’ll explore the essential elements of roofer’s general liability insurance, including the factors that influence insurance costs, what this type of insurance does and doesn’t cover, state requirements, how to apply for general liability insurance, and the distinction between general liability insurance and professional liability insurance.
So, whether you’re just embarking on your roofing business journey or seeking to enhance your existing coverage, let’s dive into the world of general liability insurance and equip you with the knowledge to safeguard your hard-earned dream.
After all, it pays to be prepared in the ever-changing world of roofing.
What Is General Liability Insurance for Roofers?
General liability insurance, sometimes called business liability insurance or commercial general liability insurance, acts as a safety net for your roofing business.
It shields you from reputational harm, copyright infringement, bodily injuries, and property damage that may arise during your operations. While it may not always be mandatory, having this coverage can be a valuable asset that safeguards your company’s future.
Factors for Choosing Roofer’s General Liability Insurance
Insurance companies price out their policies differently, so it’s wise to get several quotes and compare them. You’ll want the right balance between coverage and price to help you get the most from your roofing general liability insurance.
Coverage
Insurance companies will typically offer several coverage options. The standard for general liability insurance is $1 million per case and $2 million per policy period (generally a year).
Cost
The price for general liability insurance for roofers will depend on your company’s size, location, time in business, and how much coverage you want.
According to a national survey, about 95% of small business owners pay less than $50 a month for general liability insurance, while the average is about $30 a month or less.
What General Liability Insurance for Roofers Covers
General liability insurance is handy for roofers in claims that your business caused personal injury, property damage, or advertising injury.
This type of insurance will cover medical costs for injuries and administrative costs to handle claims, court costs, attorney fees, and settlements.
General liability insurance for roofers can cover incidents like a customer slipping and falling while they’re at your office. Or it can come into effect if falling roof tiles break a window at a job site, and you have to pay for property damage.
What Roofer’s General Liability Insurance Doesn’t Cover
- Employee injuries or accidents (workers’ compensation insurance)
- Car accidents involving company vehicles (commercial auto insurance)
- Poor workmanship
- Professional mistakes
- Theft
- Vandalism
State Requirements for Roofing General Liability Insurance
Depending on where you run your roofing business, you can get general liability insurance from an agency run by the state, a state fund, or a private insurance company.
Most states don’t require roofing businesses to have general liability insurance. To see if your state does require it, you can look at the Insureon guide to required business insurance policies.
Even if you don’t need to get it for your state, having general liability insurance can give you peace of mind.
What Do You Need to Apply for General Liability Insurance?
As with all insurance policies, you’ll need to provide some information to apply for the insurance.
You’ll need to share:
- Your company name
- How long you’ve been in business
- Your yearly revenue
- Your company industry
- If you own or rent your roofing business location
- How many employees you have
- Your contact information
What’s the Difference Between General Liability and Professional Liability Insurance for Roofers?
Although they sound similar, general liability insurance and professional liability insurance provide two very different services. Understanding the difference is vital, as it can mean the contrast between covering common accidents and protecting your business against professional missteps.
General liability insurance covers general occurrences within your roofing business. On the other hand, professional liability insurance covers when employees make a mistake in their work for a client.
For example, let’s say one of your roofing salespeople tells a customer they need a flat roof. However, the home needs a pitched roof. If the homeowner decides to buy the flat roof and it has problems, they can sue your company for misleading advice.
That situation would typically be covered by professional liability insurance but not general liability insurance.
General Liability Insurance: Your Safety Net for Peace
When it comes to your roofing business, you’ve got to cover your bases to give you the most peace of mind and success. General liability insurance can help your roofing company stay afloat even amid claims and lawsuits.
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