Many small roofing companies fail to acquire adequate insurance to protect their business and employees. The cost is often the deciding factor of whether to obtain certain coverages as oppose to others. Whether you’re a small roofing company or a large contractor, sufficient insurance coverage is necessary to ensure your business is protected from any disastrous financial losses. Here are some common mistakes all roofing companies should avoid.
Having No Roofing Insurance
Surprisingly, some roofing companies don’t have any insurance. Regardless of the reason, it’s a big mistake. Nearly all states require that a licensed roofer have insurance. Not only can it result in your business closing down, but it can also leave you with state or county fines, medical bills, and numerous lawsuits. As a result, the cost of doing business without insurance far exceeds the cost of having insurance.
Not Having Enough Roofing Insurance
Many roofers will often scrimp on the amount of insurance they purchase. That’s another huge mistake. Unfortunately, they find this out the hard way when they attempt to file a claim, and it’s denied due to lack of coverage. Because of this, most agents maintain a list of coverages that are essential for roofers.
Wrong Type of Roofing Insurance
There are many different types of policies available for nearly every business. However, builders have a different kind of risk, as opposed to other industries. Roofers often acquire builders' risk insurance, but it may not be necessary. In many cases, builders' risk insurance is paid by the landowner or the builder.
The roofing business can be profitable, but it does come with risk. Therefore, adequate insurance is necessary to ensure the longevity of your company. It’s best to speak with an insurance agent that can help you find the right insurance to fit your business needs.
Call today for a free consultation with a commercial insurance expert from Alliance.