How Insurance Companies Price Roofing Contractor Business Insurance

Nate Jones, CPCU, ARM, CLCS, AU
3 days ago
2 min read

Roofing contractors operate in one of the highest-risk construction trades, and understanding how insurance companies price your business insurance can help you save money and avoid gaps in coverage. Premiums are based on several risk factors, and knowing how insurers evaluate your business allows you to make informed decisions when shopping for coverage.

Key Factors Insurance Companies Consider

1. Type of Roofing Services Provided

High-risk services like steep roofs, metal roofing, or large commercial projects typically result in higher premiums.

2. Business Size and Payroll

Insurers assess payroll to calculate workers’ compensation costs. Larger businesses with more employees generally pay higher premiums due to increased risk exposure.

3. Claims History

Previous claims indicate potential future risk. A business with multiple past claims may face higher premiums or more restrictive coverage terms.

4. Job Site Location and Frequency

Roofing contractors in areas with severe weather, high theft rates, or challenging building codes may pay more.

5. Safety Programs and Certifications

Insurance companies reward contractors with robust safety programs, employee training, and OSHA-compliant practices by offering lower rates.

6. Coverage Limits and Deductibles

Higher coverage limits or lower deductibles increase premiums. Conversely, higher deductibles lower your cost but increase your out-of-pocket risk.

7. Types of Coverage Selected

Premiums are influenced by the policies you need, including:

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How to Get the Best Pricing on Roofing Contractor Insurance

Bundle multiple policies with the same insurer to reduce overall costs
Implement and document safety programs to lower risk
Compare quotes from multiple providers to find competitive rates
Review coverage limits carefully to avoid overpaying for unneeded protection