If you're running a roofing business, here's something you already know: your work is risky. You're dealing with heights, heavy materials, weather exposure, and the constant potential for something to go wrong. What you might not realize is how much your insurance needs differ from other contractors—and how fast those requirements are changing.
In 2025, the average roofing contractor pays around $3,200 per year for general liability insurance alone. Add workers' comp—which can run 20-50% of your payroll—and you're looking at one of your biggest business expenses. But here's the thing: inadequate coverage can cost you far more. One accident, one lawsuit, or one commercial project that requires higher limits than you carry, and you could be looking at financial disaster or missed opportunities.
This guide breaks down exactly what insurance you need, what it costs, and how to make sure you're not paying for coverage you don't need while avoiding gaps that could shut your business down.
General Liability Insurance: Your First Line of Defense
General liability insurance covers third-party injuries and property damage. In roofing terms, that means if your crew accidentally damages a customer's deck during tear-off, or if shingles fall and hit someone walking by, your GL policy handles the claim. This isn't optional coverage—it's the baseline requirement for doing business.
The standard policy limits are $1 million per occurrence and $2 million aggregate, which covers 97% of contractors in the industry. But if you're working on commercial projects, expect higher demands. Many general contractors won't even review your bid unless you're carrying $2 million per occurrence and $4 million aggregate. Some large-scale projects now require $5 million aggregate limits, especially for high-risk trades like roofing.
Cost varies widely based on your revenue, location, and claims history. Small residential roofers might pay $77-$139 per month, while larger operations can pay $625 or more monthly. The average sits around $267 per month, or about $3,200 annually. Florida and Texas contractors often pay on the higher end due to weather-related claim frequency, while Midwestern contractors might see lower rates.
One more thing: in 2026, general contractors are getting pickier about carrier quality. Many now require your insurer to have an A- rating from AM Best or better, and they won't accept non-admitted carriers. Make sure your policy meets these standards before you bid on commercial work.
Workers' Compensation: Required Almost Everywhere, Expensive Everywhere
Workers' compensation insurance covers medical expenses and lost wages if your employees get injured on the job. Given that roofing ranks among the most dangerous construction trades, this coverage isn't cheap—and in most states, it's legally required if you have even one employee.
Forty-nine states mandate workers' comp if you have employees (Texas is the lone exception). But California takes it further: if you hold a C-39 roofing contractor license, you must carry workers' comp coverage even if you have zero employees. This catches many solo operators by surprise, but it's strictly enforced.
The cost is calculated per $100 of payroll, and roofing falls under classification code 5551 (or 5552 in some states), which carries some of the highest rates in construction. You're typically looking at $24-$80 per $100 of payroll, though some contractors find competitive rates around $9.90-$15.25 through specialized programs. In expensive markets like New York City, roofers pay some of the highest workers' comp rates in the country due to the frequency and severity of claims.
Here's the math: if you have $100,000 in annual payroll and your rate is $30 per $100, you're paying $30,000 annually for workers' comp. That's why many roofing contractors treat workers' comp costs as a major factor in their pricing and hiring decisions. A clean safety record and formal safety programs can help reduce your rates over time, but expect this to be one of your largest insurance expenses.
Business Owner's Policy (BOP): Bundled Coverage That Makes Sense
A Business Owner's Policy bundles general liability insurance with commercial property insurance and business interruption coverage. For small to mid-sized roofing operations, a BOP often makes more financial sense than buying these policies separately.
The commercial property portion protects your office, warehouse, tools, and equipment from damage or theft. Business interruption coverage pays for lost income if a covered event forces you to temporarily shut down—think fire damage to your shop or a major storm that prevents you from working. For roofing contractors, this is especially valuable since weather can directly impact your revenue.
The average BOP for roofing contractors runs about $567 per month, or roughly $6,800 annually, based on small businesses with two employees. Your actual cost depends heavily on your state—Alaska contractors might pay $482 monthly, while New York contractors could pay $656 for equivalent coverage. High-hazard classification means roofers pay significantly more than low-risk businesses like software companies.
If you don't have a physical office, you can still protect your tools and equipment with a business personal property endorsement or standalone inland marine insurance. This covers items that travel to job sites—ladders, power tools, safety equipment—which are frequent targets for theft.
Additional Coverages Worth Considering
Beyond the core policies, several specialized coverages can protect your roofing business from specific risks. Commercial auto insurance is essential if you use vehicles for business—your personal auto policy won't cover accidents that occur while hauling materials or driving to job sites. Professional liability insurance (errors and omissions) protects you if a client claims your work was defective or caused them financial loss.
Tools and equipment insurance is particularly valuable for roofing contractors since your gear is constantly moving between job sites. A single theft of specialty roofing equipment can cost tens of thousands of dollars and shut down your operation. Umbrella liability insurance provides additional coverage above your primary policies, which is increasingly important as liability claims grow larger and contract requirements push higher limits.
How to Get the Right Coverage at the Right Price
Start by understanding what your clients require. Residential work typically needs the standard $1 million/$2 million general liability limits, but commercial projects often demand higher coverage. Before you bid, confirm the insurance requirements and make sure your policy includes the specific ISO forms contractors want—usually CG 20 10 and CG 20 37, which provide proper additional insured coverage.
Work with an agent who specializes in contractor insurance, particularly roofing operations. They understand the nuances of classification codes, can shop multiple carriers for competitive rates, and know which insurers provide the carrier ratings general contractors require. Don't just grab the cheapest quote—verify the carrier is A- rated or better and that your coverage matches industry standards.
Finally, invest in safety. Your claims history directly impacts your insurance costs, especially for workers' comp. Formal safety training, documented safety protocols, and a track record of few or no claims can reduce your premiums significantly over time. In a high-risk trade like roofing, safety isn't just about protecting your crew—it's about protecting your bottom line.
