Roofing is a high-stakes industry, and one misstep can lead to significant financial losses or legal issues. As brokers, it’s crucial to understand the nuances of roofing insurance to better serve your clients. This guide will provide you with the essential information you need to advise roofing contractors on the best insurance coverage for their businesses. And remember, our underwriting team at SWG Specialty is always here to assist you with any questions or specific cases.
What is Roofing Insurance?
Roofing insurance is a specialized form of commercial insurance designed to protect roofing contractors from the unique risks they face. Think of it as a safety net that catches them when things go wrong—because in roofing, things can go very wrong.
What Does Roofing Insurance Cover?
Roofing insurance isn’t a one-size-fits-all deal. It includes several types of coverage to ensure you’re protected from all angles:
- Commercial General Liability Insurance: Covers third-party bodily injury and property damage. Imagine a ladder falling and hitting a parked car—this insurance has it covered.
- Professional Liability Insurance: Covers claims of negligence or errors in professional services. If a client claims their work was subpar, this insurance helps cover legal fees and damages.
- Workers’ Compensation Insurance: Covers medical expenses and lost wages for injured employees. Roofing is a risky business, and this insurance ensures your client’s team is taken care of.
Who Needs Roofing Insurance?
Roofing insurance is essential for anyone involved in the roofing industry, including:
- Independent roofing contractors.
- Large roofing companies.
- Sub-contractors working under larger firms.
- Businesses involved in commercial, industrial, and residential roofing projects.
In short, if they’re putting shingles on a roof, they should have insurance.
Common Claims Scenarios
Let’s dive into some real-world examples to illustrate why roofing insurance is crucial.
Case Study 1: The Flaming Torch Fiasco
Imagine a contractor working on a commercial building, using a torch to seal the roofing material. Suddenly, the torch ignites some nearby insulation, causing a fire. The damage is extensive, and the building owner is furious. Luckily, Commercial General Liability Insurance covers the damage, saving the contractor from financial ruin.
Case Study 2: The Great Water Leak
A contractor finishes a roofing job, and a week later, the client calls to complain about water leaking into their newly renovated office. A small error in installation led to significant water damage. Professional Liability Insurance steps in to cover the repair costs and any legal fees.
Is Roofing Insurance Legally Required by Law in Canada?
As you know, the legal requirements for roofing insurance in Canada can vary by province. While not always legally required, having roofing insurance is highly recommended. Some provinces may have specific regulations, and many clients will insist on proof of insurance before hiring a contractor. It’s always best to check local laws and ensure compliance.
Roofing insurance is not just a good idea—it’s essential for protecting businesses from the myriad risks they face every day. From covering damages and legal fees to replacing stolen tools, the right insurance can save contractors from financial disaster. As brokers, your role in guiding your clients to the best coverage is invaluable.
Let’s partner together!
Our underwriting team at SWG Specialty is here to help you with personalized quotes and any questions you may have. Reach out to us for expert advice and support.
