Is Owning a Roofing Business Profitable?
- Nate Jones, CPCU, ARM, CLCS, AU
- Aug 12
- 2 min read
Updated: 4 days ago
If you're thinking about starting a roofing business, one of the first questions you’ll ask is: Is it profitable? The short answer is yes roofing can be a highly profitable industry when managed correctly. But like any business, profitability depends on startup costs, recurring expenses, pricing strategy, and market demand.
In this post, we’ll break down the key factors that influence roofing business profitability and how Wexford Insurance can help protect your investment with tailored coverage.
Average Profit Margins in Roofing
Roofing businesses typically see net profit margins between 10% and 40%, depending on the size of the company, location, and efficiency. Residential roofing jobs often have higher margins due to quicker turnaround, while commercial projects offer larger contracts but tighter competition.
Startup Costs to Consider
Starting a roofing business requires upfront investment in:
Licensing and registration
Tools and equipment
Vehicles and trailers
Marketing and branding
Insurance coverage
Startup costs can range from $15,000 to $50,000, depending on your scale and service area.
Recurring Expenses That Impact Profitability
To maintain profitability, you’ll need to manage ongoing costs such as:
Labor and subcontractor wages
Fuel and vehicle maintenance
Material costs (shingles, underlayment, flashing)
Disposal fees
Advertising and lead generation
Insurance premiums
Why Insurance Is Essential for Profit Protection
Roofing is a high-risk industry. Without proper insurance, a single accident or claim can wipe out your profits. At Wexford Insurance, we help roofing contractors protect their business with:
General Liability Insurance – Covers property damage and injury claims.
Commercial Auto Insurance – Protects your work vehicles.
Commercial Property Insurance – Covers your office or warehouse.
Workers’ Compensation Insurance – Required if you have employees.
Tools & Equipment Coverage – Protects your gear from theft or damage.
Growth Potential in the Roofing Industry
The roofing industry is projected to grow steadily due to aging infrastructure, storm damage repairs, and increased demand for energy-efficient roofing solutions. With the right strategy, roofing contractors can expand into:
Commercial roofing
Roof inspections and certifications
Gutter and siding services
Solar panel installation
Final Thoughts
Owning a roofing business can be highly profitable if you manage costs, price services correctly, and protect your operations with the right insurance. With support from Wexford Insurance, you can build a roofing company that’s both financially successful and well-protected.
