Here's what most roofing contractors don't realize until it's too late: you can do everything right on a job—install the roof perfectly, clean up meticulously, follow every safety protocol—and still face a lawsuit that could bankrupt your business. Maybe a homeowner trips over your equipment and breaks their ankle. Maybe a perfectly installed roof develops a leak two years later and damages expensive furniture. Maybe a passerby gets hit by debris from your worksite. That's exactly why general liability insurance isn't just a nice-to-have for roofing contractors. It's the financial safety net that keeps one bad day from ending your business.
If you're running a roofing business—whether you're a solo operator or managing a crew—you're in one of the highest-risk construction trades. The fatality rate for roofing contractors is about ten times the national average for all occupations. You're working at dangerous heights, handling heavy materials, and your work literally protects people's most valuable asset. When things go wrong, they can go very wrong. And increasingly, you can't even bid on jobs without proof of proper insurance coverage.
What General Liability Insurance Actually Covers
General liability insurance protects your roofing business from third-party claims of bodily injury, property damage, and advertising injury. Let's break down what that actually means in the real world of roofing work.
Bodily injury coverage kicks in when someone who isn't your employee gets hurt because of your business operations. A homeowner slips on roofing materials you left on their driveway. A neighbor gets struck by a falling tool. A client's kid runs into your ladder and needs stitches. Your general liability policy covers their medical bills, lost wages, and legal fees if they sue you. Given that falls top the list of roofing-related injuries and the costs of hospital bills can run into six figures, this coverage is critical.
Property damage coverage protects you when your work damages someone else's property. You accidentally drop a bundle of shingles through a skylight. Your crew's equipment scratches a client's expensive siding. A tarp you secured blows off and damages the neighbor's car. You knock over a decorative planter worth $2,000. The policy covers repair or replacement costs, plus legal defense if the property owner sues.
But here's the coverage component that surprises most roofers: completed operations coverage. This protects you from claims that arise after you've finished and left the job. A roof you installed two years ago develops a leak that damages the homeowner's hardwood floors and furniture. A flashing detail fails and water intrudes into the walls, causing mold. These claims can emerge months or even years after you collected your final payment, and completed operations coverage is what protects you. For roofing contractors specifically, this is essential because roofs are supposed to last decades, and problems can surface long after installation.
Understanding Coverage Limits: Per Occurrence and Aggregate
When you shop for general liability insurance, you'll see two numbers that look something like $1,000,000/$2,000,000. Understanding what these mean is crucial to choosing adequate coverage.
The first number is your per occurrence limit—that's the maximum your policy will pay for a single incident. If someone gets seriously injured on your worksite and the medical bills and lawsuit settlement total $1.5 million, but you only have $1 million per occurrence coverage, you're personally responsible for that extra $500,000. The second number is your aggregate limit—the total maximum your policy will pay for all claims during your policy period, typically one year.
The industry standard for roofing contractors has traditionally been $1 million per occurrence and $2 million aggregate. And that might be fine if you're doing strictly residential work for individual homeowners. But here's what's changing in 2026: requirements are getting stricter. Many general contractors won't even look at your bid unless you're carrying $2 million per occurrence and $4 million aggregate. Some commercial projects are pushing for $5 million aggregate requirements specifically for roofing, HVAC, and electrical trades. If you want to compete for larger commercial jobs, that standard $1M/$2M policy might not cut it anymore.
Think about your typical annual revenue and the size of projects you take on. If you're doing $500,000 in annual revenue, a $2 million aggregate gives you reasonable coverage. But if you're doing $2 million in revenue and working multiple commercial jobs simultaneously, you might burn through a $2 million aggregate faster than you think if you face multiple claims in one year.
What You'll Actually Pay for Coverage
The average roofing contractor pays about $267 per month—or roughly $3,200 per year—for general liability insurance with standard $1M/$2M limits. But that's just an average. Your actual cost depends on several factors, and the range is wide: small contractors might pay as little as $2,500 annually, while larger operations or those with claims history could pay $8,000 or more.
Here's a useful rule of thumb: general liability insurance typically runs around 2-3% of your annual revenue. So if you're bringing in $200,000 a year, budget $4,000-$6,000 for GL coverage. Another way to estimate it is 7-10% of your payroll costs. These aren't exact formulas, but they'll get you in the ballpark.
What drives your premium up or down? Your claims history is the biggest factor. If you've had multiple claims in the past few years, expect to pay significantly more. Your revenue matters too—higher revenue usually means higher premiums because it indicates you're taking on more projects with more potential for claims. Your location affects rates; roofing insurance in Florida costs more than in Montana because of hurricane exposure and lawsuit trends. The type of work you do matters as well. Commercial roofing on large buildings is riskier than residential re-roofing, so it costs more to insure.
If you're increasing your limits to $2M/$4M or $5M aggregate for commercial work, expect to add another 50-75% to your base premium. It's not cheap, but it's a whole lot cheaper than being uninsured when a serious claim hits.
Certificate Requirements: What You Need to Know Before You Bid
Having general liability insurance is one thing. Proving it to clients and general contractors is another. Before you start almost any commercial project—and increasingly for residential work too—you'll need to provide a certificate of insurance. This is a one-page document your insurance company issues that proves you have active coverage and shows your policy limits and effective dates.
But here's where it gets more complicated in 2026. It's no longer enough to just have general liability coverage and provide a basic certificate. General contractors and project owners are getting much more specific about what they require. They want you listed as an additional insured on your policy using specific ISO endorsement forms—usually CG 20 10 07 04 and CG 20 37 07 04, or wording that mirrors them exactly. Don't let the technical jargon intimidate you; just tell your insurance agent what forms the client requires, and they'll add them to your policy.
Many contracts also require a waiver of subrogation, which prevents your insurance company from suing the general contractor or property owner if they're partly responsible for a claim. This is becoming mandatory, not optional, on most commercial projects.
Some states have minimum insurance requirements just to get licensed. Oklahoma requires at least $500,000 in general liability coverage for active roofing contractors. Colorado has similar requirements. Check your state's licensing board to make sure you meet minimum requirements, but remember: minimum requirements and adequate protection are two different things. A $500,000 limit might meet licensing requirements, but it won't protect you adequately on most projects.
Getting the Right Coverage for Your Roofing Business
The good news is that getting general liability insurance isn't complicated. Most insurance agents who work with contractors understand roofing operations and can get you quoted quickly. But make sure you're clear about what you do. Are you primarily residential or commercial? Do you do new construction, re-roofing, or repairs? Do you install solar panels? These details affect your coverage and cost.
Before you choose the cheapest policy you can find, think about your actual exposure. If you're working on two-story residential homes, you face different risks than someone installing commercial roofing systems on 50-foot buildings. If you're doing $50,000 kitchen remodels, you need different limits than someone doing $5,000 roof repairs. Match your coverage to your actual risk, not just the minimum to get in the door.
Most importantly, don't operate without coverage. The financial risk is simply too high. Medical bills from a serious injury can easily hit six figures. Property damage claims can run tens of thousands. Legal defense costs alone can bankrupt a small business, even if you eventually win the case. That $3,200 annual premium might feel expensive when you're starting out, but it's a whole lot cheaper than a single lawsuit.
Remember: you can be the safest, most careful roofing contractor in your market and still face claims. Accidents happen. Materials fail. People get hurt. The question isn't whether you'll ever face a liability claim—it's whether you'll have the financial protection in place when you do. General liability insurance is how you make sure one bad day doesn't destroy everything you've built.
