Acquiring reasonable insurance rates for paper contractors in general is tough. Owing to their susceptible nature roof construction contractors are not an easier to insure.
First Essential Coverage ? Roofers Workers Compensation Insurance
Workers Compensation for Roofers. This insurance coverage is required by law for all wage paying businesses. Workers compensation will cover all W-2 employees and any 1099 ?independent contractor? that does not have workers compensation active coverage. With these in mind, all wages paid to individuals and independent contractors will count in the workers compensation final audit, unless people paid affirm they had workers compensation somewhere else. In that case, the artisan contractor will not be accountable for any additional premium to protect those who currently have workers compensation coverage.
Roofing contractors is one of the classes of artisan contractors that has special needs. The risky nature of the trade, exposure to high morale and moral risks, and amount of potential losses that can occur from unsuitable workmanship make covering roofing contractors little more problematic than other families of artisan contractors.
Similar Criteria With Other Artisan Contractors. Just as with all other Subcontractors roofers needs to have certain commercial general liability coverage to cover them for any property damage or bodily injury that their actions may cause to others. It should be recognized that damages to the roofing materials or any other equipment that are meant to be completely part of the installation, during the installation process is not insured by the contractors commercial general liability. Installation Floater is a coverage that covers the installing artisan contractor against losses to roofing products, tools, apparatus, equipment, and other items which will become permanent parts of an assembly. Property is insured while in transit, in warehousing location awaiting installation, at the job site, or during the actual installation course.
Depending on the size of the contractors and machinery used, roofers may need building coverage if they own the building where they are situated, business personal property and inland marine coverage to cover their offices furnishing and/ or installation equipment and tools. They also may need business auto insurance for their automobiles and trucks, if they own and use vehicles in the business.
Some roofers may choose to get an contractors umbrella insurance policy either because of their extensive exposure or to meet certain legal/ contractual requirements. An umbrella policy will give extra liability coverage above and beyond what?s offered by the underlining policies- commercial general liability, auto liability, and workers compensation.
Pricing and Eligibility: Pricing and eligibility of roofers are based on few elements including the following:
Roofing Contractor Size: This is maybe the number one factor for all contractors. Size of contractors is valued by total yearly revenues/ salaries paid of the roofer operations. Larger size contractors pay more insurance premium money. Payments made to other subcontractors will be contained unless the other contractors have similar insurance with certificate of insurance provided. This applies to both commercial general liability and workers compensation where yearly cost/ wages are essential questions that dictate rating and acceptability. If subcontractors are used, insurance companies want to know the length of time certificates of insurance are saved (if at all possible 3 years or longer), type of subcontract work carried out (ie Waterproofing, Siding, Hot tar, Rain Gutters, Carpentry, Insulation, etc.)
Limits of Insurance. Roofing contractors pay more for higher limits of insurance. This is pretty much usual with all insurance coverage.
Insurance providers need to know the greatest height of constructions worked on (ideally no more than 3), warranties offered (better warranties suggests less insurance claims), strategies of doing away with waste materials (poor processes mean higher risk).
Experience of the Contractor. Experience of contractors will play a critical role in deciding the eligibility of the contractors. Larger size contractors with bad insurance experience may face difficulty finding insurance at realistic rates.
Roofing contractors will also need a permit bond for many of their projects. Requirements for roofing contractors permit bonds may change, depending on requirements of local authorities.
Author is a blogger for Insurance Navy, a leading provider of Contractors Commercial Bonds Insurance. Visit Insurance Navy?s website and blog for more details about Roofers Business Auto Insurance.
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