Here's the dilemma most roofing contractors face when shopping for insurance: do you bundle everything into a Business Owner's Policy (BOP), or buy general liability and commercial property coverage separately? Both approaches protect your business, but the right choice depends on your company's size, revenue, and the types of projects you take on. Let's break down when a BOP makes sense and when you're better off with standalone policies.
What Is a BOP and What Does It Cover?
A Business Owner's Policy is essentially a package deal. It combines three essential coverages into one policy: general liability insurance (which covers third-party bodily injury and property damage), commercial property insurance (which protects your business property like your office, tools, and materials), and business interruption coverage (which replaces lost income if you can't operate due to a covered event like a fire or storm).
For roofing contractors, a BOP typically provides $1 million per occurrence and $2 million aggregate in general liability coverage, plus around $5,000 in business property coverage as a baseline. The average cost runs between $320 to $567 per month depending on your provider, location, and risk profile. That's significantly less than buying general liability (averaging $267/month for roofers) and commercial property (typically $55-99/month) separately.
Who Qualifies for a BOP?
Not every roofing business can get a BOP. Insurance carriers have strict eligibility requirements. Generally, you need to have fewer than 100 employees, generate less than $5 million in annual revenue, and maintain relatively low-risk operations. Here's where things get tricky for roofing contractors: roofing is considered a high-risk trade because of the inherent dangers of working at heights and the potential for significant property damage if something goes wrong.
That doesn't mean you can't get a BOP—it just means you'll likely pay more than, say, a landscaping company would for the same coverage limits. Most smaller roofing operations (one to three crews, doing primarily residential work) will qualify without issue. If you're running a larger operation with multiple commercial projects happening simultaneously, you might bump up against those eligibility thresholds.
The Real Cost Comparison
Let's talk numbers. If you buy general liability and commercial property insurance separately in 2025-2026, you're looking at roughly $267 per month for GL coverage and another $55-99 per month for property coverage. That's $322-366 per month total. A BOP covering the same exposures typically runs $320-567 per month, with an average around $567 monthly or about $6,806 annually.
Wait—that seems like the BOP costs more, right? Here's what those numbers don't show: the BOP includes business interruption coverage, which standalone policies don't. If a fire destroys your shop and you lose two months of revenue while rebuilding, business interruption coverage pays your ongoing expenses like rent, payroll, and loan payments. That coverage alone is worth the premium difference for most contractors.
The other hidden value in a BOP is simplicity. You have one policy, one renewal date, one deductible structure, and one insurance company to deal with when filing claims. For small roofing businesses where the owner is wearing every hat from estimator to project manager to bookkeeper, that administrative simplicity has real value.
Where BOPs Fall Short for Roofing Contractors
The standard $1 million per occurrence limit in most BOPs sounds like a lot until you land your first big commercial job. Many commercial property owners and general contractors require $2-5 million in general liability coverage before you can even bid on their projects. If you're doing work on schools, government buildings, or large apartment complexes, those higher limits are non-negotiable.
This is where standalone policies start making more sense. With separate general liability and property policies, you have much more flexibility to customize your coverage limits. Need $5 million in GL but only basic property coverage? Easy. Want to add professional liability coverage for design-build projects? That's typically not available in a standard BOP, but you can add it to a standalone policy package.
Another critical coverage that all roofing contractors need—whether through a BOP or standalone—is completed operations coverage. This protects you against claims that arise after you've finished a job. A homeowner discovers a leak two years after you replaced their roof? That's a completed operations claim. Standard BOPs include this, but the limits might not be sufficient if you're doing high-value commercial work.
When to Switch to Standalone Policies
There are clear signals that it's time to graduate from a BOP to standalone commercial policies. If your business exceeds 100 employees or generates more than $5 million in annual revenue, you'll likely no longer qualify for a BOP anyway. But even before hitting those thresholds, you might outgrow a BOP's capabilities.
If you're regularly turning down commercial projects because the contract requirements exceed your BOP's limits, that's your sign. If you've started offering additional services like solar panel installation, architectural consulting, or warranty programs that require specialized liability coverage, standalone policies give you the flexibility to add those endorsements. If you're operating in multiple states with different licensing requirements and risk profiles, standalone policies allow you to tailor coverage state by state.
The transition from BOP to standalone policies often happens when contractors move from primarily residential work to a mix of residential and commercial projects. At that stage, you need the flexibility to meet varying contract requirements without overpaying for coverage you don't need on every single job.
Making the Right Decision for Your Business
Start by looking at your current project mix and your growth plans for the next 12-24 months. If you're a small residential roofing contractor doing mostly insurance restoration work and reroof projects under $20,000, a BOP probably makes perfect sense. You get solid coverage, business interruption protection, and administrative simplicity at a competitive price.
If you're bidding on commercial jobs, managing multiple crews, or offering specialized services beyond basic roofing, standalone policies give you the flexibility to scale your coverage as your business grows. The slightly higher administrative burden of managing multiple policies is offset by the ability to customize your coverage and potentially save money by not over-insuring certain aspects of your business.
Talk to an experienced commercial insurance broker who specializes in construction trades. They can review your actual contracts, analyze your risk exposure, and run quotes for both options. The right answer isn't the same for every roofing contractor—it depends on your specific situation. Just make sure you're not leaving money on the table or, worse, leaving your business underinsured because you chose convenience over coverage.
