It’s no secret that roofing is one of the riskiest contracting jobs out there. That’s why small companies must work extra hard to protect themselves against potential accidents or lawsuits. Here’s what you need to know about the types of business insurance needed by roofing companies.

General Liability Insurance

One of the most important types of business insurance a roofing company can have is general liability. This type of policy primarily protects you against claims of bodily injury or property damage that you cause to other parties. In some cases, this is the only policy a contractor carries. However, extra coverage is still needed for full protection.

Business Owner's Policy or BOP

That’s where the business owner’s policy or BOP comes into the picture. A BOP is not just one type of coverage. Rather, it is a collection of the most common types of policies a small business needs to have. It bundles several different policies together. The included coverage usually is general liability insurance, property coverage for your office and tools, and business interruption insurance.

This is the route that most small or mid-size roofing companies take. Why? With everything available in one place, it is easy to ensure your business policy portfolio is protecting your company against a wide variety of scenarios and risks.

Commercial Auto Insurance, Worker’s Compensation Insurance, and More Coverage

BOP policies are great. However there are still a few other coverage options that you’ll want to consider as a contractor.

For example, it is also important to carry commercial auto insurance on any vehicle that you use for business. This includes both the truck or van that you drive to job sites and any vehicles that you own that employees drive.

If you have employees, you’ll also need workers' compensation insurance. This is a mandatory policy that protects both your company and your employees if they experience a serious injury while on the job.

Many small contractors also opt for an excess liability or umbrella policy. This type of business insurance extends your general liability and commercial auto liability coverage and helps out of there’s ever a catastrophic claim against you. It will cover claims not covered by your general liability insurance.

Not every residential roofing company is the same. That is why it is important to speak with your business insurance agent directly. They will walk you through the different types of coverage and help you determine exactly what type of policy or collection of policies suits your exact needs.