Submitted by: Ed Sneineh

Roofing contractors is one of the classes of artisan contractors that has special needs. The risky nature of the trade, exposure to high morale and moral risks, and degree of potential losses that can occur from poor workmanship make covering roofers somewhat more challenging than other classes of artisan contractors.

Similar Criteria With Other Contractors. Just like all other Contractors roofing contractors need specified commercial general liability coverage to cover them for any property damage or bodily injury that their performance may produce to others. It should be pointed out that damages to the roofing materials or any other devices that are meant to be entirely part of the installation, during the installation process is not covered by the contractors commercial general liability. Installation Floater is a coverage that covers the installing artisan contractor against damages to roofing materials, devices, apparatus, equipment, and other fittings which will become permanent parts of an set up. Property is covered while in transit, in storage facility awaiting installation, at the job site, or for the duration of the actual installation course.

Depending on the size of the contractors and equipment utilized, roofers may need building coverage if they own the building where they are located, business personal property and inland marine coverage to cover their offices furnishing and/ or installation equipment and tools. They also may require business auto insurance for their vehicles and trucks, if they own and use vehicles in the trade.

Workers Compensation for Roofers. This insurance is compulsory by law for all wage paying establishments. Workers compensation will cover all W-2 personnel and any 1099 “independent contractor” that does not have workers compensation inforce coverage. As a result, all payrolls paid to personnel and independent contractors will add up in the final audit of the workers compensation, unless people paid affirm they had workers compensation somewhere else. In that case, the artisan contractor will not be responsible for any additional premium to cover those who presently have workers compensation coverage.

Some roofing contractors may choose to get an umbrella policy either because of their large exposure or to meet certain legal/ contractual commitments. An umbrella policy will give extra liability insurance above and beyond what’s offered by the underlining policies- commercial general liability, auto liability, and workers compensation.

Pricing and Eligibility: Pricing and acceptability of roofers depend on several factors including the following:

Size of the Roofer: This is possibly the #1 criterion for all contractors. Size of contractors is measured by total yearly revenues/ salaries paid of the roofer operations. Larger size contractors pay more insurance premium money. Payments made to other subcontractors will be incorporated unless the other contractors hold alike insurance with certificate of insurance presented. This is applicable to both commercial general liability and workers compensation where yearly cost/ wages are vital factors that determine pricing and eligibility. If subcontractors are utilized, insurance companies want to know the length of time certificates of insurance are maintained (if possible three years or longer), type of subcontract work performed (ie Waterproofing, Siding, Hot tar, Rain Gutters, Carpentry, Insulation, etc.)

Limits of Insurance. Roofers pay more for higher limits of insurance. This is pretty much usual with all insurance coverage.

Insurance providers need to know the maximum height of constructions worked on (preferably no more than 3), warranties offered (better warranties suggests less insurance claims), procedures of eliminating waste material (improper methods mean higher risk).

Experience of the Contractor. Contractor experience serves a critical role in identifying the acceptability of the contractors. Larger size contractors with bad insurance claim experience may face difficulty procuring insurance at realistic premiums.

Roofing contractors will also need a permit bond for many of their projects. Requirements for roofers permit bonds may differ, depending on requirements of local authorities.

About the Author: Author is member of Insurance Navy, a Chicago leader of business and auto insurance. You can get information about

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Source:

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