If you're starting a roofing business in New York or already running one, here's something that might surprise you: the state doesn't require a statewide roofing license. But before you celebrate, know this—insurance requirements are strict, complicated, and expensive. Skip them, and you're looking at hefty fines, license revocations in certain cities, and potential lawsuits that could wipe out your business overnight.
The real challenge? Roofing contractors in New York face some of the highest workers' compensation premiums in the entire country. Add in general liability requirements that vary by location and project, disability benefits insurance, and local licensing rules, and you've got a complex web to navigate. Let's break down exactly what you need, what it costs, and how to protect your business without overpaying.
No Statewide License, But Local Rules Apply
Here's where New York gets tricky. Unlike states with universal contractor licensing, New York leaves licensing up to cities and counties. If you're working in New York City, Nassau, Suffolk, Westchester, Rockland, Putnam, or Buffalo, you need a Home Improvement Contractor (HIC) license. Work outside these areas? No state license required—but you still need insurance.
In New York City specifically, getting your HIC license means jumping through several hoops: obtaining a business license from the Department of Consumer and Worker Protection (DCWP), providing a sales tax ID and Certificate of Authority, proving you have workers' comp and general liability insurance, showing EPA certification for lead-safe practices, passing the Home Improvement Exam, and posting a $20,000 surety bond or enrolling in the trust fund program. It's a process, but it's also what separates legitimate contractors from fly-by-night operations.
Workers' Compensation: The Non-Negotiable Requirement
If you have even one employee—full-time, part-time, seasonal, doesn't matter—you must carry workers' compensation insurance in New York. There are no exemptions for contractors, and the penalties for non-compliance are severe. We're talking fines, stop-work orders, and potential criminal charges if someone gets hurt on the job.
Now, here's the painful part: roofing work falls under Class Code 5551, which carries some of the highest workers' comp premiums in the entire state system. Why? Two words: Scaffold Law. New York Labor Law Section 240, known as the Scaffold Law, makes property owners and general contractors absolutely liable for gravity-related injuries—falls from heights, falling objects, etc. This strict liability means insurance companies pay out massive claims, and they pass those costs straight to you.
For 2025, the maximum annual payroll limitation for officers and partners in construction trades is $91,374. What does that mean for your bottom line? A lot. Roofing contractors in NYC often pay 30-50% more in workers' comp premiums than contractors in other states doing identical work. If you're running a crew of five, your annual workers' comp premium could easily hit $40,000-$60,000 or more, depending on your claims history and safety record.
Disability Benefits Insurance: The Other Mandatory Coverage
Here's something many new roofing contractors miss: New York requires disability benefits insurance for all employees, separate from workers' compensation. This coverage provides partial wage replacement for employees who become disabled due to non-work-related injuries or illnesses. Think pregnancy, broken leg from a weekend skiing accident, or recovery from surgery.
The good news? Disability benefits insurance is relatively affordable compared to workers' comp—usually a few hundred to a couple thousand dollars annually, depending on your payroll. The bad news? It's another policy to manage, another renewal to track, and another compliance requirement you absolutely cannot skip.
General Liability Insurance: Technically Optional, Practically Essential
New York doesn't legally require general liability insurance for most roofing contractors—but try running a business without it. Property owners won't hire you. General contractors won't let you bid. And if someone slips on a loose shingle in their driveway or your crew accidentally damages a customer's skylight, you're personally liable for every dollar of damages.
The baseline? Most residential property owners require at least $1 million per occurrence. For NYC Home Improvement Contractor licensing, you need general liability, personal injury, and property damage insurance with a $1 million minimum per occurrence. But here's the reality: that's just the starting point. Many commercial projects now demand $2 million per occurrence and $4 million aggregate. Some large projects push requirements to $5 million aggregate. The insurance landscape is tightening as litigation costs rise across the state.
Annual premiums for general liability typically range from $500 to $3,000, though costs vary based on your revenue, claims history, and coverage limits. If you're doing primarily residential work in the $500K-$1M annual revenue range, expect to pay around $1,500-$2,500 annually. Commercial work with higher limits? Budget $3,000-$5,000 or more.
Commercial Auto Insurance and Additional Coverage
If you use trucks, vans, or any vehicles for your roofing business, you need commercial auto insurance—period. Your personal auto policy won't cover business use, and if you're in an accident while hauling materials or driving to a job site, you could face claim denials that leave you exposed.
Beyond the basics, consider these additional coverages: Commercial property insurance protects your tools, equipment, and materials stored at your shop or warehouse. Inland marine insurance covers tools and equipment while in transit or at job sites. Professional liability insurance (errors and omissions) protects against claims that your work was defective or didn't meet specifications. Umbrella insurance adds an extra layer of liability protection beyond your general liability and commercial auto limits—crucial given New York's high-litigation environment.
How to Get Started and Save Money
First, talk to an insurance broker who specializes in construction trades—not a general agent. Construction-focused brokers understand Class Code 5551, know which carriers offer competitive rates for roofers, and can structure your policies to avoid gaps in coverage. They'll also help you navigate the NYC licensing requirements if you're operating in the city.
Second, invest in safety. It's not just the right thing to do—it directly impacts your premiums. Implement a written safety program, conduct regular toolbox talks, enforce fall protection protocols, and document everything. Carriers offer discounts for certified safety programs, and more importantly, fewer injuries mean lower experience modifications (e-mods) that can save you thousands annually on workers' comp premiums.
Third, get certificates of insurance (COIs) from all subcontractors before they step foot on your job sites. If they're not properly insured and someone gets hurt, you could be on the hook. Verify coverage with their insurance carrier directly—don't just accept a piece of paper.
Running a roofing business in New York isn't cheap, and insurance is your single biggest overhead after labor. But skimping on coverage or trying to fly under the radar isn't just risky—it's a business-ender. Get the right policies in place, work with experienced agents, prioritize safety, and you'll protect both your business and your bottom line. Ready to get covered? Start by reaching out to a construction insurance specialist who can give you accurate quotes based on your specific operation.
