NYC Insurance Blog

Reasons Why Roofing Contractors Need Commercial Insurance

The construction industry is considered one of the high-risk professions. With numerous accidents and fatalities at job sites, roofers must have the right insurance policies. Purchasing commercial insurance offers peace of mind, mitigates financial losses, and covers losses resulting from accidents or negligence causing bodily harm or property damage. Typically, roofing insurance is costly because of the associated risks, among them lifting heavy materials and working at elevated heights. Here are some of the reasons why roofing contractors need to have commercial insurance.

Clients Suing For Property Damage

One of the reasons why roofing contractors need commercial insurance is to protect themselves from liability damage. If an accident occurs, causing property damage, contractors are liable for the damages incurred. If the roofing contractors do not have a general liability insurance policy, they will pay out of pocket. However, with commercial insurance, roofing contractors can rest assured the insurer will compensate the client if there is property damage. 

Clients Suing Roofing Contractors for Negligence or Wrong Advice

Roofing contractors are usually highly experienced professionals. Therefore, property owners rely on their professional advice when installing or maintaining their roofs. If a roofing contractor offers wrong advice or recommendation, the client can sue. Also, clients can sue for professional negligence. This applies when the client thinks that the roofing contractor is incompetent. Professional mistakes are inevitable and can affect a roofing contractor’s reputation in the construction industry. Therefore, commercial insurance protects roofers against possible lawsuits and financial losses. 

Third-Party Suing For Injuries

Regardless of how careful or experienced a roofing contractor is, anything can happen to injure people outside the property. For example, if a hammer slips down the roof, hitting a passerby, they can sue for the injuries caused. Remember, compensations can vary depending on the location or severity of the injuries. Since third-party damages are unavoidable, contractors must invest in general liability insurance to protect their company and contractors.

Contractors Suing For Work-Related Injuries

Workplace injuries are common in the construction industry. Usually, roofing contractors take a few days to recover. In that case, the roofing company should cover their lost income and medical expenses. Sometimes, workers might suffer permanent injuries making it impossible for them to work again. According to labor laws, roofing contractors should compensate such employees for lost wages. Without workers’ compensation insurance, the contractors can incur hefty financial losses. Therefore, roofing contractors are advised to invest in commercial insurance instead of taking chances.

Finally, roofing contractors with commercial insurance are considered professional and reliable. If a roofing contractor purchases commercial insurance, it indicates they are taking their roofing business seriously. Also, it is a sign that they value their employees and clients because anything can happen when undertaking a roofing project. Remember that purchasing the right insurance policy prevents possible fines, license revoking, or related penalties. Authorized bodies, for example, the Occupational Safety and Health Administration (OSHA), can penalize your business or company if it’s not adequately insured. It is advisable to consult an experienced insurance agent to purchase a policy that suits your business and financial needs.  

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