Umbrella, equipment and bonds for roofers

Umbrella / excess liability

An umbrella adds limits above your GL, auto and employer's liability. Commercial and multifamily contracts commonly require $2M to $5M total. Check that the umbrella follows your GL terms and doesn't add its own roofing exclusions, and whether it needs to be written on a follow-form basis to satisfy the contract.

Tools & equipment

Also called contractor's equipment or inland marine. Covers theft and damage to tools, compressors, kettles, ladders, lifts and materials on the job site or in transit. GL doesn't cover your own property. Policies can schedule big items individually and cover small tools with a blanket limit.

Contractor bonds

Bonds aren't insurance for you. They protect consumers and workers, and the surety will collect from you if it pays a claim. CSLB requires these bonds depending on how your license is set up:

• Contractor license bond, $25,000. Required for every active license.
• Bond of qualifying individual, $25,000. Required when the qualifier is a Responsible Managing Employee, or a Responsible Managing Officer who owns less than 10% of the company.
• LLC employee/worker bond, $100,000. Required for LLC licenses, in addition to the license bond.

License bond pricing is driven mostly by the owner's personal credit. Good credit is usually a few hundred dollars a year; poor credit can cost many times more. Options for poor credit include a co-indemnitor, collateral, or a cash deposit with CSLB instead of a bond. See the CSLB requirements page for the full breakdown, or get a bond quote at CSLB-Bonds.com, our site for California contractor license bonds.

Public works and many commercial jobs also require bid, performance and payment bonds, which are underwritten on your financials and work history.