Insurance Cost for Roofing Business: What Affects Your Premiums?
- Nate Jones, CPCU, ARM, CLCS, AU
- 3 days ago
- 2 min read
For roofing contractors, understanding insurance costs is critical for budgeting and protecting your business. Premiums vary based on multiple factors, and knowing what influences them can help you save money while maintaining proper coverage. This guide explains what affects your roofing business insurance premiums, typical cost ranges, and how to get a competitive quote with Wexford Insurance.
Key Factors That Affect Roofing Business Insurance Premiums
Roofing is considered a high-risk trade, so insurers evaluate your business carefully. The main factors influencing premiums include:
1. Type of Roofing Services Offered
Complex roofing projects or high-risk services like steep roofs or metal roofing can increase insurance costs.
2. Business Size and Payroll
The number of employees and total payroll directly affects workers’ compensation premiums. More staff = higher potential claims.
3. Past Claims History
Insurers review your claims history. Businesses with previous claims may face higher premiums or stricter terms.
4. Location and Job Sites
Roofing companies in areas with extreme weather, high crime rates, or strict local regulations may see higher rates.
5. Safety Practices and Certifications
Businesses with strong safety programs, employee training, and OSHA compliance often receive discounted premiums.
6. Coverage Limits and Deductibles
Higher coverage limits or lower deductibles increase premiums, while higher deductibles can reduce your costs but increase out-of-pocket risk.
7. Types of Coverage Selected
Premiums vary depending on whether you need:
Typical Insurance Costs for Roofing Businesses
While actual costs depend on your location, services, and risk profile, here are average annual premiums for roofing contractors in the U.S.:
Coverage Type | Small Business (1–5 Employees) | Medium Business (6–15 Employees) | Large Business (16+ Employees) |
General Liability | $500–$1,500 | $1,500–$3,500 | $3,500–$7,500 |
Workers’ Compensation | $2,000–$5,000 | $5,000–$12,000 | $12,000–$30,000 |
Commercial Auto | $1,000–$2,500 | $2,500–$6,000 | $6,000–$12,000 |
Tools & Equipment Coverage | $300–$1,000 | $1,000–$3,000 | $3,000–$6,000 |
Professional Liability | $500–$1,500 | $1,500–$4,000 | $4,000–$10,000 |
How to Manage and Reduce Your Roofing Insurance Costs
Bundle multiple policies for discounts
Implement robust safety programs
Limit coverage to what you truly need
Pay premiums annually instead of monthly if possible
Work with an experienced insurance agent specializing in roofing
Get a Roofing Business Insurance Quote With Wexford Insurance
Wexford Insurance specializes in providing roofing contractors with tailored insurance solutions. Their team works with multiple carriers to ensure you:
Get the best rates for your risk profile
Receive complete coverage without gaps
Obtain certificates of insurance for clients and permitting offices