Roofing is the most dangerous trade in construction and the most expensive to insure. Falls from roofs are the single leading cause of construction fatalities — and workers comp rates reflect that reality. Understanding and managing roofing insurance costs can mean the difference between profitability and going broke.
Workers Compensation — The Big Cost
Workers compensation is by far the largest insurance cost for roofing contractors:
- Base rates: $15–$40+ per $100 of payroll depending on state
- Example: 10 roofers at $45,000 each = $450,000 payroll. At $25 per $100 = $112,500/year base premium
- EMR modifier: A clean safety record (EMR below 1.0) can reduce this by 10–30%. A bad EMR (above 1.0) can increase it by the same amount.
The risks that drive these rates:
- Falls: The defining risk. Falls from roofs, ladders, scaffolding, and elevated surfaces.
- Heat illness: Working on rooftops in direct sun and extreme heat
- Burns: Hot tar, torches (for modified bitumen), and hot equipment
- Struck-by: Falling materials, tools, and equipment from roof level
- Musculoskeletal: Heavy lifting (shingle bundles = 60-80 lbs each), awkward positions
General Liability Insurance
General liability for roofers covers:
- Property damage: Damage to the building interior during roof work (leaks, debris, structural damage)
- Completed operations: Roof leaks, failures, and damage after the job is finished — the most common roofer GL claim
- Bodily injury: Materials falling from the roof injuring pedestrians or occupants below
- Adjacent property damage: Debris or materials damaging neighboring properties
Roofing GL rates are among the highest in construction — typically $5,000–$15,000/year for a small contractor, significantly more for commercial roofers.
Commercial Auto
- Flatbeds and dump trucks: For hauling materials and debris
- Crew vehicles: Trucks and vans transporting workers to job sites
- Equipment trailers: Towed behind trucks, need to be scheduled on the policy
Inland Marine / Equipment
- Nail guns, compressors, generators
- Hot tar kettles, torch equipment
- Safety equipment (harnesses, anchors, guardrails)
- Ladders, scaffolding, and staging
How to Control Roofing Insurance Costs
Because roofing insurance is so expensive, cost management isn't optional — it's survival:
- Fall protection program: OSHA-compliant written plan, daily toolbox talks, documented harness usage. This is the single most impactful cost reduction.
- EMR management: Target EMR below 0.85. Track leading indicators (near-misses, safety observations) not just lagging indicators (injuries).
- Pay-as-you-go workers comp: Match premium payments to actual payroll instead of paying a large deposit and facing audit adjustments.
- Return-to-work program: Getting injured workers back on light duty quickly reduces claim severity and future premiums.
- Proper employee classification: Administrative staff, estimators, and salespeople should be classified at office rates — not roofing rates.
- Subcontractor management: Verify every sub has their own workers comp. Uninsured subs become YOUR workers comp responsibility.
- Drug testing: Many carriers require or incentivize pre-hire and random drug testing programs.
- Independent agent: Roofing insurance is a specialty market with limited carriers. An agent with access to roofing-focused programs — including state funds, alternative markets, and excess carriers — is essential.
Finding Coverage
Many standard carriers will not write roofing contractors. You may need:
- Specialty contractor markets: Carriers that focus on construction and trades
- State workers comp funds: Several states offer comp funds for high-hazard trades
- Excess and surplus lines: Non-admitted carriers that write risks standard markets decline
- Alternative programs: Group self-insurance, captives, and contractor associations with group programs
An independent agent with access to all of these markets is your biggest advantage. The difference between the right and wrong carrier for roofing can be 40–60% in premium.