Firstly congratulations on making the decision to move forward with your business and start a roofing company. This is of course no substitution for legal advice and you should consult with insurance experts to know exactly what your company needs as far as insurance goes in your current state. Becoming a professional roofer and striving to be the best roofing company you’ll need to hire subcontractors and other employees, which means you will need contractors insurance. This protects you and your company if anything were to happen such as accidents, employee injuries, or lawsuits.
If you did not have Albany roofing insurance then these potential problems would be an out of pocket expense. These expenses would put tremendous financial pressure on your business and could even end it. It is also possible for customers to check on a roofing company’s insurance when looking for the best roofing company and not choose you if you do not possess the proper documentation.
There are three types of Albany roofing insurance that is necessary to conduct business: Worker’s compensation, general liability and in some cases surety bonds for larger more expensive jobs. Roofing contractors insurance requirements vary in every single state so it is important to check your local area on what is required. Insurance policies can be somewhat complex so here we will break down why you need these policies and how they will protect your business.
Also referred to as workers comp, in a type of coverage that protects your employees if an accident were to happen. Albany Roofing can be a dangerous field of work and no matter how careful you are there is always a chance that a work related injury could occur. It is imperative to be sure your workers are wearing their proper safety gear while on a roof, as well as practicing safety on the ground.
If you were to conduct business without workers comp you would be held liable for any medical bills of someone injured and that could be extremely costly. It could also be your responsibility to pay for missed wages and other benefits to who was injured. Protecting yourself as a business owner with workers compensation insurance is the smartest thing you can do to keep your business thriving. If you invest in workers’ compensation it will cover your unforeseen expenses by monthly payments.
The benefit to holding this insurance is that it protects not only your employees but you as a business owner from the high costs of medical care. An example of how workers’ comp is supposed to function is that when you employ a handful of roofers and one of them accidentally misses a shingle and nails straight through his hand, you direct him to take a visit to the hospital to remove the nail and get some stitches. While at the hospital they X-Ray his hand because the nail went through a ligament and some bone, and also he needed to be stitched up. He now misses a week of work while his primary hand heals and may even need some physical therapy to gain motion back.
Depending on the contract you hold with each employee you might be paying him for his time out of work. If this particular roofer felt like he had a case he could even claim that you were negligent and attempt to sue you. He would need to prove that you contributed to the severity of his injuries in order to have a case.
This is where you workers’ compensation steps in and provides immediate coverage. If not then a lawsuit would take months and in most circumstances by receiving the benefits your employee forfeits his right to sue you. Your insurance would cover the roofers medical bills and aftercare with ease, allowing your employee to heal up and get back to work fast.
Are you liable if someone gets hurt on your property?
This is a common question asked by customers when looking for the best roofing company for the job. When a contractor doesn’t have adequate liability or workers’ compensation insurance, oftentimes it’s the customer who ends up paying the price. If the hired contractor becomes injured while installing a new roof the customer could be financially responsible for the damages, including medical bills and even lost wages. Depending on your local laws the injured employee may be able to also sue the homeowner for contributing or claiming to the cause of the injured person. Before signing a contract for a new roof replacement most homeowners will ask for copies of the local roofing companies WC and liability insurance forms to protect themselves.
In most states it is required to purchase a liability and workers compensation policy in order to conduct business, much like how it is required to have car insurance in order to drive a vehicle. Some states do not require these insurances such as Texas and they can choose to pay a private company to handle workers compensation benefits. Usually it is only much larger businesses that have millions of dollars coming in continuously being made with a reliable cash flow who choose to pay out of pocket through a private company.
When you first start out with your new roofing company it will make much more sense for you to pay a public insurance company for the necessary coverage. Injuries are very common in the construction business, big and small and you most likely will not have the revenue to cover medical costs of even the small ones. It is smarter to protect yourself for the future of your roofing company.
General liability insurance is to protect your business in the case that a third party such as a customer were to become injured, if there was any property damage, or if a lawsuit were to take place.
General liability typically covers:
- Property damage
- Bodily injury
- Legal costs
- Advertising injury such as slander to a competitor
Some charges that liability policies usually do not cover are:
- Employee injury
- Work vehicle and tool damages
- Errors on jobs
- Punitive damages
General liability offers coverage and protection that workers compensation does not. If you hire a contractor to do a small repair job on your home and he falls off he falls ladder into the owner of the home and hurts the homeowner then it might not be covered. The property damage would be but the medical bills probably would not be covered by general liability as we stated above. It is important for roofing subcontractors to understand exactly what is covered by each liability and workers compensation insurances.