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6 Good Reasons Why Insurance Benefits Roofing Contractors

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For those who are not aware, September is officially Life Insurance Awareness Month. So GAF is using that theme to create a month initiative where we will be focusing on everything insurance and how it impacts the roofing community. Ultimately, the topic of insurance impacts multiple areas of the roofing community. It can range from personal involvement to corporate necessity, from private homes to public buildings, from contractor productive leads to contractor headaches. We will have one post a week about an area of insurance that affects our business. Our topics will go through quick purchasing tips, selling pointers, contractor warning signs, insurance best practices, and how to alleviate the pain of dealing with insurance projects.

Workers compensation and general liability are necessary for legitimate business owners to protect their valuable corporate assets. Insurance will protect a company’s employees, equipment, and property (buildings and vehicles). It will provide financial benefits for legal issues and business protection from the loss of revenue due to an injury. See below for the top 6 reasons why and how having Insurance is a benefit to a roofing contractors business.

  1. Employee Protection – The most obvious reason to offer employees workers compensation insurance is that it protects the employee should there be an accident while on a job. The employee knows that should an accident happen, they will receive proper medical care. The roofing sector continues to be one of the riskiest in construction. In fact, Time magazine stated this year that being a roofer is the fourth most dangerous job in America, so it’s vitally important for employees to know that they work for an organization that will protect them.
  2. Business/Property Asset Protection – Purchasing general liability and property insurance ensures that your business will remain open for business even during the worst accident. If a storm were to destroy a warehouse, the results could be catastrophic unless the business was properly insured.
  3. Business Reputation – Roofing companies that do not offer their employees workers compensation will lose perceived corporate legitimacy, profitable employees, and potential partners or allies. Insurance adjusters and other contractors will likely not recommend an uninsured roofing company to their clients/customers.
  4. Additional Financial Penalties – Most states have additional penalties that mandate employers possess workers compensation insurance for their employees. Yet, in Texas you can opt out of workers compensation or “non-subscribe” but in most other states there are additional financial penalties for not offering it to employees.
  5. Competitors Marketing Message: “Homeowners Held Responsible” – If an employer does not cover their employees with insurance and the employee gets injured on the job at a person’s home, there is the potential for that employee to take legal action against the homeowner.
  6. GAF Contractor Designations – Roofing contractors who do not have insurance will not be considered for special manufacturer designations. It is a requirement to obtain insurance before GAF, or other manufacturers, offers the chance for a contractor to become a member of the Certified Contractor Program.

It is a difficult and costly experience for roofing companies to secure insurance for their people, business, and property because of the risk associated with their profession. Yet, it can also be one of the best decisions you can make for your growing company.

Related articles:

5 Warning Signs Your Homeowners Premium May Increase
6 Ways to Lower Your Business Insurance Costs
5 Ways to Reduce Your Homeowners Insurance Policy Premium

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