Insurance for Your Ontario Roofing Business
The roofing insurance you have and the amount of coverage you have will show your customers that you are a committed professional.
Your customers want the roofs over their heads to protect them from all elements in all seasons. Your Ontario roofing business needs a roofing insurance package that will give you and your clients peace of mind.
Ask your Western business insurance expert about what kind of roofing insurance you need. We’ll help you get coverage for residential, commercial, industrial, or institutional projects that you are taking on.
We’re here for you whether you’re in Thunder Bay, Sault Ste. Marie, Aurora, Milton, Mississauga, Toronto, Cambridge, London, Sarnia, Cornwall, Petawawa, Pembroke, or anywhere in Ontario where you are operating a roofing business.
What kind of roofer’s insurance do I need?
You’ll need what’s called contractors insurance or roofers’ insurance, a package of coverages to protect your roofing business in the event of accidents, lawsuits, property damage, or employee injuries.
Without insurance, you’d need to pay for these incidents out of your own pocket. It’s also possible that customers will only choose a roofer who has the insurance to cover them in case of an accident or work that is improperly done.
When you can show proof of insurance with prospective clients or lenders, it shows that you are a professional who takes your business and your customers seriously.
Go over the types of coverages you need in detail with your Western business insurance expert to make sure your Ontario roofing business is covered for the risks that you face.
Here are coverages you’ll need as roofing contractor:
1. Commercial General Liability (CGL): The most important type of insurance you need as a roofer in Ontario is commercial general liability.
Roofing companies can choose a commercial general liability policy between $2 million and $5 million, depending on the size of your company and the work it does. Discuss with your Western business insurance expert how much CGL coverage your roofing business needs.
Homeowners can prefer to work with roofers who have general liability insurance to cover the costs of an accident, such causing damage to a customer’s roof skylight while repairing their roof. A homeowner may be able to sue your roofing business and you would be responsible for those costs without CGL coverage.
If you were sued, commercial general liability insurance would cover the legal costs to defend the claim against your roofing business in court, as well as costs to cover damages to compensate third parties.
CGL protects your roofing business in the event of third-party injury (usually your customer) or property damage.
Roofing subcontractors may not be covered by the general liability insurance policy of the business that hired them. They should have their own contractors’ insurance.
2. Tools and Equipment Insurance: Tools and equipment insurance provides coverage for roofing tools and equipment that are vandalized, stolen, lost, or damaged by a flood or fire.
For example, if your ladder gets damaged or a nail gun gets stolen, tools and equipment insurance can provide financial coverage to repair or replace these items.
Any item valued at less than $1,500 is considered a tool. Anything valued above $1,500 is considered equipment.
Be sure to have a list of your tools and equipment handy when you speak to your Western business insurance expert for roofing insurance.
3. Surety Bond: Once you accept a job from a customer, you are obligated to complete it. A surety bond is also called a contractor bond and it’s a type of business insurance that will pay your customer if you fail to complete a job.
If you go out of business, go bankrupt, or otherwise fail to finish the job, your customer can file a claim to get financial compensation with your insurer to have their costs covered, up to a maximum amount.
You may be required to have a surety bond before accepting a contract. Only companies licensed by the Surety Association of Canada may offer you a surety bond.
Ask your Western business insurance expert about a surety bond for your Ontario roofing business.
4. Pollution Liability Insurance: This type of coverage protects your roofing business from claims that allege pollution-related liabilities that cause injury or third-party property damages. As a roofer, the chemicals in sealants, adhesives, and coating used in your work create exposures to pollutant risks.
Pollution liability insurance will help extend your coverage for claims that a CGL policy typically excludes.
5. Errors and Omissions Insurance: This type of coverage protects you if you make a mistake while roofing, give incorrect advice to a customer, or forget to perform some aspect of the roofing job. Errors and omissions insurance can offer you some coverage.
6. Commercial vehicles: Your personal vehicle insurance will not cover you in the case of an accident. When you or your employees are on the road travelling from the shop to a roofing and anywhere in-between, commercial vehicle insurance may cover your vehicles in the case of an accident.
7. Commercial Property Insurance: Whether you rent or own your location for your roofing business, commercial property insurance can provide financial coverage in the case of a fire that destroys or damages your business property and its contents.
Commercial property insurance also protects your place of business or office and its contents from damage or loss related to severe weather, theft, and vandalism.
8. Business Interruption Insurance: If there is an insured loss at a job site or other work premises that is severe enough to stop your roofing business operations, the expenses associated with getting your business running again will be covered.
This type of policy usually covers vandalism, fire, wind, flooding, and other risks (make sure you understand what your policy covers). Your policy will help compensate you for lost income and expenses that you will need to continue paying even while you are unable to work.
9. Workers’ compensation
Ontario construction businesses that have one or more employees are also required to have workers compensation insurance to protect their employees.
How much roofing insurance do I need and how much will it cost?
How much will it cost to insure my roofing business? It will depend on the size of your business and the roofing work that you do.
That means it’s unlikely that all roofing businesses would pay the same monthly or annually for their coverage.
Ask your Western business insurance expert to help you get the right coverage at the right value to protect your roofing business.
Western Insurance has licensed BUSINESS INSURANCE EXPERTS to get your Ontario construction business the right construction insurance package. Our experts are available now to help you navigate the business insurance journey to protect your construction business.
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