Getting insured as a new roofing contractor

What to get, in order

1. Decide your business structure. Sole proprietor, corporation or LLC. LLCs carry an extra $100,000 worker bond and must have $1M+ in liability insurance.
2. Get the $25,000 contractor license bond. CSLB needs it on file before it issues the license. Pricing is based on your personal credit.
3. Bind workers' compensation. Required for every C-39 license, even if you have no employees yet. Your carrier files the certificate with CSLB.
4. Bind general liability. CSLB requires it only for LLCs, but every roofer should carry it. Nearly every GC and property manager requires a certificate before you start, your homeowner contracts must disclose whether you have it, and one water-damage claim without it can put you out of business.
5. Add commercial auto for any truck used for your roofing business, whether it's titled to the business or to you personally. Personal auto policies typically exclude vehicles used mainly for work. A commercial policy can be quoted for both business and personal use.
6. Insure your tools and equipment when the cost of replacing them out of pocket would stop work.

What underwriters will ask you

Have these ready and the quote moves faster:

• Years of roofing experience, and who you worked for
• Residential vs. commercial split, and new construction vs. re-roof
• Roof types: shingle, tile, metal, single-ply, torch-down, hot mop
• Maximum height or number of stories you work on
• Estimated annual revenue, your own payroll, and what you'll pay subcontractors
• Whether your subs carry their own GL and workers' comp
• Any prior claims, and any lapse in coverage

Keeping first-year cost down

• Be accurate on payroll. Underestimating creates a bill at audit. Overestimating ties up cash all year.
• Only list work you actually do. Torch-down and hot work raise rates. Listing it when you don't do it costs money; leaving it off when you do it voids coverage.
• Collect certificates from every sub. Uninsured subcontractors can be charged to your policy at audit.
• Keep coverage continuous. A gap restarts your history and can suspend your license.
• Re-shop after the first claim-free year. Some markets that declined you as a new venture may quote once you have history.

Start a new venture quote