Why does a roofer need General liability Insurance?

A roofer needs General Liability (GL) insurance because the nature of their work presents significant risk to third parties, both in terms of bodily injury and property damage. Here's a breakdown of why it's essential:

🛡️ Top Reasons Roofers Need General Liability Insurance

1. Protection Against Third-Party Injury Claims

• Example: A roofing hammer falls off a ladder and hits a homeowner or pedestrian.

• Coverage: GL pays for medical bills, legal fees, and potential settlements or judgments.

2. Coverage for Property Damage

• Example: During tear-off, debris falls and breaks a skylight, shatters a window, or damages landscaping.

• Coverage: GL pays for repair or replacement of damaged third-party property.

3. Completed Operations Liability

• Example: After a roofing job is finished, a leak due to faulty installation causes water damage to ceilings and insulation.

• Coverage: GL includes completed operations coverage for bodily injury or property damage arising from work already performed.

4. Contractual Requirements

• Example: A general contractor or property manager requires the roofer to carry GL insurance with specific limits and endorsements before they're allowed on-site.

• Mandates: Many contracts require proof of GL (via a Certificate of Insurance) and named additional insured status.

5. Legal Defense Costs

• Even if not at fault, GL covers defense against allegations of negligence, including attorney fees, court costs, and judgments (up to policy limits).

6. Reputation and Business Continuity

• Carrying GL insurance signals professionalism and reduces the chance that a single incident will bankrupt the business or result in loss of licensing.

🚫 What GL Does Not Cover

• Injuries to the roofer’s own employees (covered by Workers' Compensation).

• Faulty workmanship without causing third-party damage (addressed via Contractor’s E&O or warranty work).

• Damage to the roofer’s own tools or equipment (covered by Inland Marine).

Summary