Why Do Roofing Contractors Need Builder’s Risk Insurance?

Did you know that 50% of all contractors experience theft of some kind? Florida, Texas, and California are among the top 10 states with the highest rates. But, this doesn’t mean you won’t get hit if you operate your roofing contractor business elsewhere

According to the National Equipment Register, job site theft costs the industry almost $1 billion each year.  It comes as no surprise that 90% of thefts occur between 6 p.m. Friday and 6 a.m. Monday morning. Does this mean your equipment and tools are safe? 

As the stats show, the risk of financial loss through theft is high. Just like other construction companies, Builder’s Risk Insurance will protect from the financial impact if this happens to you.

What is Builder’s Risk Insurance? And why do roofing contractors need it? Here is a handy guide to explain how having Builder’s Risk Insurance will benefit your roofing company.

What Is Builder’s Risk Insurance?

Also known as All Risk and Course of Construction Insurance, Builder’s Risk covers fires, floods, storms, acts of vandalism, and theft. Typically, policies last up to one year but can be extended. 

For example, a home is being renovated. Your job is to install a new roof. However, your employees fail to complete the job properly. As a result, several tiles become loose and need to be replaced. The costs to repair or replace the roof, along with labor costs, are covered with the Builder’s Risk policy. 

You and the homeowner aren’t left out-of-pocket. That is why roofers need Builder’s Risk Insurance. 

What does a Builder’s Risk Policy cover?

• Changes to Building Codes: Regulations change frequently. If they change during a project, it may result in a loss of profits. Any delays because of the changes to building codes can cause further financial losses. Your insurance policy would cover any loss suffered. 
• Replacing Materials After Fire: If a thousand roof tiles are fired damaged, along with joists and other materials, they can’t be used. They’re rendered worthless. Fire damaged goods are expensive to replace. Builder’s Risk, however, fully covers the costs to replace those materials. 
• Physical Loss of Tools: Theft rates are increasing each year. Tools stored onsite can be covered should a thief strike. For example, you leave a forklift at the work site for the weekend. When you return Monday morning, it’s gone. Your Builder’s Risk Insurance Policy can cover the cost to replace the forklift and any delays caused.

4 Good reasons to invest in Builder’s Risk Insurance

1. covers labor costs because of delays
2. covers profits lost as a result of a delay to the completion of the roof
3. protects materials and equipment when they are lost or stolen
4. protects a building during the installation or repairing of the roof

Protect your roofing business

Running a business is tough. With theft on the rise, adequate protection is necessary. Builder’s Risk Insurance covers labor costs, tools, materials, and the building against damage or theft. Builder’s Risk Insurance coverage can prevent a real financial crisis for a small business. We’re here to help. Give us a call (877) 960 02221 to get a FREE quote.