Why a Roofing Contractor Needs General Liability Insurance
Like other business owners, roofing contractors typically need general liability insurance. Although this type of insurance is often quite expensive, a lack of general liability insurance puts a roofing contractor at risk on multiple levels. Looking at the problems with a lack of insurance in depth makes it clear why you should carry the coverage even if it isn't required by state law.
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The Cost of Damages
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As Roofersinsurancesolutions.net points out, roofing is a dangerous profession, and accidents happen. Sometimes these accidents cause serious damage to the property on which the roofer and his employees are working. If you don't have proper liability insurance, you could be sued. Lawsuits have the potential to financially devastate a roofing company. If you are a roofer who has connected personal liability to your company -- that is, you accept personal responsibility for the finances and debts of the company -- lawsuits also may reach into your own bank accounts.
The Ability to Work
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Many clients understand that qualified roofers carry insurance. They also comprehend that when a roofer doesn't have proper insurance, they sometimes can be held liable for damages and injuries that occur on the property. Clients thus often won't consider bids from roofers who can't verify their general liability coverage. Having general liability improves the roofer's ability to find work and enables him to compete with other qualified roofing companies.
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Proof of Licensure
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In some states, roofing contractors must have a license in order to work. Sometimes, depending on the state requirements, you may not be able to get a roofing contractor license unless you hold and maintain proper insurance. Having general liability insurance thus sometimes acts as a verification of skill and education requirements. Savvy clients will check that you are licensed before they consider your bid.
Considerations
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General liability is not the same as worker compensation insurance. These two types of insurance are typically bundled together but can be sold separately. Worker compensation insurance covers you if a roofing worker is injured on the job. It doesn't cover damage to the property in which you are working. Some roofers try to cut costs by buying just one insurance or the other. This is not a good idea. Even if you have at least one insurance form, the fact you cannot afford both does not speak well about the stability of your business.
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References
- Photo Credit roofer,roofing, image by Greg Pickens from Fotolia.com
