Risk Management:

Roofing Contractors

Author

Shahn Christensen
April 12, 2025

Classification: Roofing Contractors

ISO Code: 98677 (Roofing – Residential & Commercial)
NAICS Code: 238160 (Roofing Contractors)
SIC Code: 1761 (Roofing, Siding, and Sheet Metal Work)

Classification Description:

Roofing contractors are businesses engaged in the installation, repair, or replacement of roofs on residential, commercial, or industrial buildings. This work may involve a variety of materials such as shingles, metal, tile, slate, EPDM, TPO, PVC, or built-up roofing. Services often include:

  • Tear-off and removal of old roofing

  • Deck repair or replacement

  • Flashing, gutter, and ventilation installation

  • Waterproofing and sealing

  • Maintenance and emergency leak response

Work is typically performed at height, using ladders, scaffolds, harnesses, and heavy tools, and involves significant exposure to environmental conditions and potential third-party damage.

Underwriting Summary:

Key Exposures:

  • Premises/Operations Liability: Slips, falls, or falling objects affecting third parties or property.

  • Completed Operations: Claims stemming from improper installation leading to leaks, mold, or structural damage.

  • Employee Injuries: High frequency of falls, heat exhaustion, and cuts/lacerations.

  • Subcontractor Liability: Many roofers hire subs and may be liable for their actions without proper risk transfer.

  • Property Damage: Caused by torch-down systems or puncturing hidden utilities.

  • Auto: Heavy use of pickups and flatbeds; potential for distracted or fatigued driving.

Underwriting Considerations:

  • Are they residential, commercial, or both?

  • Do they use torch-applied or hot tar systems (higher hazard)?

  • Are subcontractors insured and under written agreements?

  • Is there a formal safety program and fall protection policy?

  • How do they handle material storage and disposal?

  • Are certificates of insurance collected and verified?

  • Any history of claims from water intrusion or wind uplift failures?

  • General Liability (with Completed Ops and CG 2010 / CG 2037 AI endorsements)

  • Workers’ Compensation

  • Inland Marine (for tools & equipment)

  • Commercial Auto

  • Excess Liability / Umbrella

  • Contractors Pollution Liability (for mold/water damage claims)

  • Professional Liability (if design or consulting services are offered)

  • Installation Floater (for materials stored offsite or in transit)

Certainly. Here's a realistic General Liability (GL) claim scenario specific to a roofing contractor:

Claim Example: General Liability – Bodily Injury (Premises/Operations)

Insured:

ABC Roofing Co. – a residential and light commercial roofing contractor

Policy:

Commercial General Liability (ISO CG 00 01), $1M per occurrence / $2M aggregate

Claim Scenario:

While re-roofing a two-story home, an ABC Roofing crew member inadvertently knocked a roofing hammer off the edge of the roof. Despite cones and caution tape set up around the perimeter, a delivery driver for a nearby vendor walked around the side of the house to get a signature and was struck on the shoulder by the falling hammer.

The injury resulted in a fractured clavicle, required surgery, and the driver was out of work for several weeks. The injured party filed a claim against ABC Roofing alleging negligence in maintaining a safe jobsite.

Allegations:

  • Failure to secure tools at elevation

  • Inadequate warning signage or barriers for third parties

  • General negligence in jobsite hazard control

Outcome:

  • Medical bills: $36,000

  • Lost wages: $12,000

  • Pain & suffering settlement: $22,000

  • Total Claim Payout: $70,000

Lessons & Underwriting Notes:

  • Tool tethering protocols and “drop zones” were not enforced.

  • The site supervisor lacked OSHA 10-hour certification.

  • The contractor had no jobsite safety documentation or daily toolbox talks recorded.

Risk Management Takeaways:

  • Enforce strict tool tethering and drop zone clearance protocols.

  • Require OSHA training for all crew leaders.

  • Post clear signage and have ground guides for non-crew visitors on active sites.

  • Implement written jobsite hazard assessments.

Absolutely — here’s a Professional Liability (E&O) claim scenario involving a roofing contractor. While it's less common, these claims can arise when roofers offer consulting, inspection, or specification services—or when their alleged error leads to financial loss beyond physical damage.

Claim Example: Professional Liability – Negligent Roof Design Consultation

Insured:

Summit Roofing Solutions – a roofing contractor offering both installation and pre-construction consulting services

Policy:

Contractors Professional Liability (Claims-Made), $1M per claim / $2M aggregate
Retroactive Date: 2 years prior to the claim date

Claim Scenario:

Summit Roofing Solutions was hired by a commercial property developer to evaluate roof system options for a new 3-story office complex. They recommended a single-ply TPO membrane system and provided written specs and installation notes. The developer's GC used those specs to bid and subcontract the roof work.

After construction was complete, the building experienced significant heat blistering and membrane failure during the first summer. An independent forensic engineer concluded that the specified roofing system was not suitable for the building’s low-slope steel deck under the regional heat conditions.

The building owner alleged that Summit negligently recommended an inadequate roof system, which led to:

  • Removal and replacement of the roofing system

  • Project delays

  • Tenant lease extensions and loss of rental income

Allegations:

  • Professional negligence in design consultation

  • Failure to consider regional heat-load tolerances

  • Financial loss from project delay and tenant displacement

Outcome:

  • Defense costs: $55,000

  • Settlement: $195,000 (partial reimbursement for re-roofing and lost rents)

  • Total Claim Payout: $250,000

Lessons & Underwriting Notes:

  • Summit’s scope of work exceeded typical contracting and involved advisory services.

  • There was no disclaimer in their consulting contract limiting liability for spec recommendations.

  • Their GL policy excluded professional services, making the E&O policy the only applicable coverage.

Risk Management Takeaways:

  • Roofing contractors offering any design, spec, or inspection advice should carry Professional Liability.

  • Clearly separate consulting and contracting functions in scopes of work and contracts.

  • Use disclaimers and limitation of liability clauses when providing recommendations.

Claim Example: Workers’ Compensation – Fall from Roof

Insured:

Titan Roofing & Construction – specializes in residential reroofs and storm repair

Policy:

Workers’ Compensation Policy (Statutory Limits)
Employers Liability: $1,000,000 / $1,000,000 / $1,000,000

Claim Scenario:

A 28-year-old employee was installing asphalt shingles on a two-story home. He was working near the ridge without a harness or guardrails when he slipped on loose granules and fell 20 feet to the ground. He landed on his back, suffering:

  • A fractured vertebra

  • Broken wrist

  • Internal bruising

The worker required surgery and physical therapy, and was out of work for nine months.

Claim Breakdown:

  • Emergency Room & Surgery: $58,000

  • Hospital Stay & Rehab: $42,000

  • Temporary Total Disability (wage replacement): $35,000

  • Ongoing Physical Therapy: $11,000

  • Total Claim Payout: $146,000

OSHA Investigation Outcome:

  • No written fall protection plan

  • Lack of training documentation

  • No enforcement of PPE policies

  • Resulted in an OSHA citation and $8,500 fine

Risk Management Failures:

  • No daily jobsite safety checklists or toolbox talks

  • Inadequate fall protection enforcement

  • No formal return-to-work (RTW) program in place

Risk Management Recommendations:

  • Implement and enforce a 100% fall protection policy (personal fall arrest systems on any surface above 6 feet).

  • Conduct daily safety meetings and document them.

  • Provide regular PPE training and spot inspections.

  • Develop a Return-to-Work Program to reduce indemnity exposure.

Would you like templates for a roofing-specific Jobsite Safety Checklist or Return-to-Work policy? I can also provide an experience mod impact analysis from a claim like this.

Certainly — here’s a Commercial Auto Insurance claim scenario tailored to a roofing contractor. Auto exposures are significant in this industry due to constant transportation of crews, equipment, and materials.

Claim Example: Commercial Auto – At-Fault Collision with Bodily Injury

Insured:

Skyline Roofing, LLC – mid-sized roofing contractor with 12 vehicles in their fleet

Policy:

Business Auto Policy (BAP) – ISO CA 00 01
Liability Limit: $1,000,000 CSL
Physical Damage: Comprehensive and Collision on 8 vehicles

Claim Scenario:

One of Skyline’s foremen was driving a company-branded F-250 to a jobsite early in the morning. While merging onto a freeway, he failed to check his blind spot and sideswiped a passenger car, pushing it into a guardrail. The vehicle was totaled, and the driver of the car suffered:

  • A broken arm

  • Concussion symptoms

  • Emotional distress (claimed)

The police report cited Skyline’s driver as at fault. Dashcam footage confirmed the driver did not signal or yield properly.

Claim Breakdown:

  • Third-Party Property Damage: $26,000 (total loss of vehicle)

  • Third-Party Bodily Injury: $85,000 (medical bills, lost wages, pain & suffering)

  • Insured Vehicle Repair: $8,400

  • Rental Reimbursement: $900

  • Total Claim Payout: $120,300

Underwriting & Risk Management Notes:

  • The driver had two prior speeding violations not disclosed at renewal.

  • No formal fleet safety program or MVR monitoring in place.

  • No driver training or defensive driving courses required by the company.

Post-Loss Actions Taken:

  • Implemented quarterly MVR checks and established clear driver eligibility criteria.

  • Enrolled all drivers in online defensive driving training.

  • Installed dashcams and telematics in all company vehicles.

  • Created a Commercial Auto Loss Control Plan to satisfy carrier risk engineering.

Coverage Lessons:

  • A $1M CSL limit was sufficient here, but a more severe injury could easily exceed that.

  • Umbrella coverage should be considered if operating in urban areas or with multiple vehicles on the road daily.

  • Physical Damage coverage ensured prompt repair without major out-of-pocket costs.

Would you like a sample Fleet Safety Policy, MVR Review Protocol, or a claim impact analysis on auto insurance premiums?

Certainly — here’s a real-world-style Inland Marine claim scenario tailored to a roofing contractor. These policies typically cover tools, equipment, and materials offsite, in transit, or on jobsites, where a standard property policy wouldn’t apply.

Claim Example: Inland Marine – Theft of Tools from Jobsite Trailer

Insured:

Ironclad Roofing Co. – commercial roofing contractor with multiple crews operating across a metro region

Policy:

Contractor’s Equipment/Inland Marine
Scheduled & Blanket Tools Coverage: $150,000
Deductible: $1,000 per occurrence
Territory: Within the U.S., including jobsite and transit coverage

Claim Scenario:

At the end of a long day, Ironclad Roofing’s crew left their locked utility trailer containing tools and small equipment at an active jobsite overnight. Despite being chained to a fence and parked in a lit area, the trailer was broken into around 2:00 AM.

The thieves used bolt cutters and stole over $35,000 worth of equipment, including:

  • Pneumatic nailers

  • Roofing harnesses

  • Gas-powered generators

  • Cordless tool sets

  • A commercial-grade drone used for roof inspections

A police report was filed immediately, and some footage was obtained from a nearby security camera, but the property was never recovered.

Claim Breakdown:

  • Replacement Cost of Tools: $34,100

  • Deductible: $1,000

  • Total Payout: $33,100

Investigation & Adjuster Notes:

  • The stolen items were listed under the blanket tools endorsement.

  • The trailer itself was not scheduled, but since the theft occurred at a jobsite, the policy responded.

  • The drone was questioned but deemed a covered item as it was listed under "electronic jobsite equipment" via endorsement.

Risk Management Observations:

  • Trailer lacked GPS tracking or alarm system.

  • No overnight security patrol or fencing at the jobsite.

  • Tools were not inventoried daily, delaying claim verification.

Recommendations Going Forward:

  • Require all trailers to have GPS devices and tamper alarms.

  • Lock high-value tools in on-vehicle lockboxes separate from general storage.

  • Maintain a digital tool inventory with photos, serial numbers, and values.

  • Review scheduled items annually to avoid underinsurance.

Would you like a sample tool inventory log, or a coverage checklist for Inland Marine policies for roofing contractors? I can also model the cost impact of tool losses on renewal premiums.