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construction blueprintsLike all insurance policies, those specifically designated for roofing companies include industry-specific language and coverages.  Many policies are full of exclusions that are not always the first thing your agent will tell you about.  Price means a lot when it comes to insurance.  But you might have to ask, “What am I giving up with this policy?”

6 common policy exclusions:

1. Subcontractor work not covered
This is the one that bites a “paper” Contractor.  If you use sub-contractors and the claim isn’t covered by their insurance, your policy might not cover the use of sub-contractors.  This means you pay for all the attorney fees and any damages that are awarded.

2. Open Roof Exclusions
These exclusions can be worded to exclude any damages from an open roof, even if you tarped it and tried to prevent damage.

3. Limitations on policy limits if a subcontractor does the work
This one is deceptive.  The insurance company will cover any damage a sub-contractor might be responsible for, but they won’t pay to the policy limits of $1 million.  Instead, they limit the amount they pay to $25,000.  Barely enough for the lawyers.

4. Bodily Injury Not Covered

Roofing can attract some rough and tumble people.  Things can get heated.  If an employee of yours happens to lose his cool and shoves and injures a rival sales guy your business could be on the hook for the damages. 

5. No previous acts covered  
Your insurance policy should cover you for all the work you’ve done until the statute of limitations is up.  A common exclusion doesn’t cover any work you did prior to your policy period.

6. New Construction Exclusions
You’re classified as a re-roofer because 90% of your business comes from re-roofing homes due to hail damage.  But you could meet a developer who is building a handful of homes.  Four years later one of the homes could settle and you’re drawn into a lawsuit.  Unfortunately, your policy excludes new construction and won’t even offer you legal counsel to dispute any claims.

Carriers exclude coverages to save money.  Those savings are passed on in the form of cheaper premiums.  It can be a balancing act on a business owner’s part to decide between savings now or better coverage.  The best way is to have everything explained and then make an informed decision.  

If you’ve heard of these exclusions it’s probably a good chance they are on your current policy. If you would like an expert to look over your account or to get a quote, you can fill out the short form below.

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Alliance Insurance Group
7910 Ralston Rd., Ste 7
Arvada, CO 80002

Phone: (303) 279-9700
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