Roofer Insurance Requirements: Complete Guide for Contractors (2025)

Quick Answer: Roofer Insurance Requirements

Roofing is classified as high-risk work, requiring substantial insurance coverage. Typical requirements include:

Roofing contractors face higher insurance requirements than most other trades due to the elevated injury risk and potential for significant property damage.

---

Why Roofers Face Higher Insurance Requirements

Roofing is consistently ranked among the most dangerous construction trades:

Industry Risk Factors

Height-related hazards:

• Falls from roofs (leading cause of roofing deaths)
• Ladder accidents
• Scaffold failures
• Unstable roof surfaces

Property damage risks:

• Water intrusion from incomplete work
• Structural damage from improper installation
• Fire from torch-applied roofing
• Damage to customer property below work area

Equipment and material risks:

• Hot tar and adhesive burns
• Falling materials injuring bystanders
• Tool accidents
• Vehicle accidents hauling materials

Real Claim Examples

---

Insurance Types for Roofing Contractors

General Liability Insurance

What it covers:

• Third-party bodily injury
• Property damage to customer's home
• Completed operations (leaks discovered later)
• Products liability (defective materials)
• Personal and advertising injury

Typical requirements:

Key coverage for roofers:

Completed Operations:

• Covers damage discovered after job completion
• Essential for roof leaks appearing months later
• Often excluded—verify it's included

Products-Completed Operations Aggregate:

• Separate limit for defective work claims
• Should match your per-occurrence limit

Average cost: $2,500-$7,000 per year (higher than most trades).

Workers' Compensation Insurance

Roofing has among the highest workers' comp costs:

When required:

• Most states require it with any employees
• Some states require it for sole proprietors
• General contractors almost always require it
• Homeowners increasingly request verification

What it covers:

• Medical expenses for work injuries
• Lost wages during recovery
• Disability benefits (temporary and permanent)
• Death benefits and survivor support
• Rehabilitation costs

Roofing classification codes:

*Rates vary significantly by state and experience modification factor

Average cost: $8,000-$25,000+ per employee per year (among highest rates of any trade).

Surety Bonds

Many states and projects require roofing bonds:

Contractor license bonds:

• Required for roofing license in many states
• Guarantees compliance with regulations
• Protects consumers from unlicensed work

Performance bonds:

• Required for larger commercial projects
• Guarantees project completion
• Typically 100% of contract value

Common bond amounts:

Average cost: $150-$750 per year for license bonds; 1-3% of contract for performance bonds.

Commercial Auto Insurance

Essential for roofing operations:

Important considerations:

• Covers trucks hauling shingles and equipment
• Trailers need separate coverage
• Heavy materials increase risk and rates

Average cost: $2,000-$5,000 per vehicle per year.

Inland Marine / Tools Coverage

Protects roofing equipment:

• Nail guns and compressors
• Generators and power tools
• Ladders and scaffolding
• Materials in storage or transit

Coverage types:

• Contractor's equipment floater
• Installation floater (materials at job site)
• Tool coverage

Average cost: $500-$2,000 per year depending on equipment value.

---

State Licensing and Insurance Requirements

Roofing license requirements vary significantly:

States with Specific Roofing License

States with General Contractor License

States with Minimal Requirements

Some states have limited licensing:

• Kansas
• Vermont
• New Hampshire (some local requirements)

Note: Even without state requirements, clients and GCs typically require substantial coverage.

---

Who Requires Roofer Insurance?

General Contractors

GCs hiring roofing subcontractors typically require:

Property Owners and Managers

Commercial properties:

• Higher limits often required
• Additional insured endorsements
• Waiver of subrogation requests
• Certificates of insurance before work begins

Residential customers:

• Increasingly aware of insurance importance
• May request certificate of insurance
• HOAs often have strict requirements

Insurance Companies (Storm Damage Work)

Insurance restoration programs often require:

• Pre-approval as preferred contractor
• Specific coverage limits
• Clean claims history
• Background checks
• Financial stability verification

---

How to Get Roofing Insurance

Step 1: Assess Your Needs

Consider:

• State licensing requirements
• Types of roofing (residential, commercial, industrial)
• Project sizes you bid on
• Number of employees
• Equipment and vehicle values
• Client requirements (GCs, commercial, residential)

Step 2: Coverage Checklist

Essential coverages:

• General liability ($1M-$2M per occurrence)
• Workers' compensation (statutory)
• License bond (per state requirement)
• Commercial auto (all work vehicles)

Recommended additions:

• Umbrella liability ($1M-$5M)
• Inland marine/tools coverage
• Business interruption
• Professional liability (design-build)

Step 3: Find Specialized Insurers

Sources for roofing insurance:

• Specialty contractor insurance brokers
• Trade association programs (NRCA, local associations)
• Surplus lines insurers (for hard-to-place risks)
• Assigned risk pools (if declined elsewhere)

Important: Many standard insurers won't write roofing coverage. Work with brokers experienced in construction.

Step 4: Manage Your Experience Modification

Experience mod affects workers' comp rates:

• Below 1.0 = better than average safety
• Above 1.0 = worse than average safety
• Can dramatically affect premiums

Improve your mod:

• Implement safety programs
• Provide fall protection training
• Document all safety measures
• Manage claims aggressively
• Return injured workers to light duty quickly

---

Common Insurance Mistakes for Roofers

Mistake 1: Insufficient Completed Operations

Problem: Policy doesn't cover defects discovered after job completion.

Solution: Verify completed operations coverage with adequate limits and extended reporting period.

Mistake 2: Excluding Residential Work

Problem: Commercial-only policies won't cover residential jobs.

Solution: Ensure policy covers all types of work you perform.

Mistake 3: Misclassifying Workers

Problem: Treating employees as subcontractors to avoid workers' comp.

Solution: Properly classify workers. Audits can result in massive back-premiums and penalties.

Mistake 4: Inadequate Umbrella Coverage

Problem: Underlying limits insufficient for catastrophic claims.

Solution: Carry umbrella coverage of at least $1M-$2M; more for commercial work.

Mistake 5: Gaps During Slow Seasons

Problem: Canceling coverage during winter creates gaps and higher future costs.

Solution: Maintain continuous coverage year-round.

---

Frequently Asked Questions

How much does roofing insurance cost?

Typical annual costs:

• General liability: $2,500-$7,000
• Workers' comp: $8,000-$25,000+ per employee
• Surety bond: $150-$750
• Commercial auto: $2,000-$5,000 per vehicle
• Umbrella: $1,500-$5,000

Total for a small roofing company can range from $15,000-$50,000+ annually.

Why is roofing insurance so expensive?

Roofing is classified as high-risk due to:

• High rate of falls and injuries
• Potential for catastrophic claims
• Fire risk with certain roofing methods
• Significant property damage potential
• History of large claims industry-wide

Can I work as a roofer without insurance?

Requirements vary by state, but:

• Most states require workers' comp if you have employees
• Many require insurance for licensing
• GCs won't hire uninsured subs
• Customers increasingly demand proof of coverage
• Operating uninsured exposes personal assets to claims

Do I need separate insurance for each roofing type?

Not necessarily, but verify your policy covers:

• All roofing methods you use (torch-down, flat, steep-slope)
• Both residential and commercial work
• New construction and repair/replacement
• All geographic areas you work in

What's the difference between roofing and general contractor insurance?

Roofing-specific policies:

• Higher liability limits expected
• Completed operations more critical
• Higher workers' comp rates
• Specific classifications for premium calculation
• May require surplus lines placement

How do I lower my roofing insurance costs?

• Implement documented safety programs
• Maintain excellent claims history
• Provide ongoing employee training
• Use proper fall protection equipment
• Work with specialized insurance brokers
• Consider higher deductibles if cash flow allows

---

Key Takeaways

• Roofing requires higher coverage than most other trades
• General liability minimum typically $1M-$2M per occurrence
• Workers' comp rates among highest in construction
• Completed operations coverage essential for leak claims
• GCs and commercial clients often require umbrella coverage
• Average total cost for small roofer: $15,000-$50,000+ annually
• Specialized brokers often needed to place coverage

---

Important Disclaimer

This guide provides general information about roofing insurance requirements based on publicly available sources. This is not legal or insurance advice. Requirements vary by state, municipality, and project type.

Always verify current requirements with your state's contractor licensing board and consult with a licensed insurance professional experienced in construction coverage for advice specific to your situation.

Last verified: December 2025

Sources: State Contractor Licensing Boards, NRCA (National Roofing Contractors Association), OSHA, State Insurance Departments