Exploration of liability, cost, and professional ethics.
Introduction
Roofing is one of the most hazardous professions in construction. Falls, heavy materials, and unpredictable weather place workers and homeowners alike at risk. For this reason, liability insurance and workers’ compensation are cornerstones of a responsible roofing practice. Or are they? Debates persist: are these insurances essential protections, or costly redundancies that inflate project prices? This article examines both sides of the discussion, highlighting the architectural, legal, and ethical dimensions.
My Experience with Insurances
In my career I have carried the proper insurances, why? because it' the right thing to do! Right? At least that's what we're told.
I'll share my experiences with insurances and some common debates below.
Because roofing is a high risk occupation, many insurers won't cover us. This leaves only a few organizations that we have a choice to select from. Are the select few insurance companies working together? Most likely. The rates to insure a roofing business can be exorbitant, demands put on us complicated and not suited realisitcally to our needs. Usually a case of roofing contractors getting painted with the same brush....a few careless and reckless contractors who drive the costs up for all, as with all insurance.
Story Time
In my 17+ years as a roofing contractor, I have used my insurance exactly once. I attempted to use it a second but decided against it for reasons explained below.
The first occurance was my 4th year in business and due to my naivety. I made an error not getting verbal direction to a client in writting and it ended up costing me $1000 in deductibles, my insurance paid out $4,500 to make repairs.
The second time was a large commercial project that a storm came over suddenly while we were replacing the roof. It leaked and caused some minor water damage in a few areas of the interior. This particular building had been leaking for 10+ years so was hard to decipher what was new damage and what was old. An aggrivating factor was the building had asbestos plaster. The building owner tried to milk my insurance company for a total asbestos abatement. It didn't work, however a disagreement insued. The total realistic damage caused by us, $5000 and change. My insurance deductible was $6000. I ended up accepting $11,000 off of the total project to walk away.
As for workers compensation, roofing contractors also pay some of the highest premiums. During my time in business I also had 2 occurances with Workers Compensation...both were fraudulant.
I had one employee "fall" off a roof to try and collect a settlement, it was proven that it was planned and he jumped and his case dismissed.
The second was also fraudulant but I had no way to prove it, my rates went up.
In the years of paying these two insurance premiums I have paid over $100,000 in insurance.
The realization of this is that the odds of requiring a significant amount of money to correct mistakes is incredibly low, we perform our own risk assesments and risk management. What this evidence has provided me on a small scale is that the majority of claims were fraudulant or attempted fraud and the premiums were a vast overpayment. I estimate my insurance providers paid out approx $24,500 in claims. $20,000 of those dollars for fraud.
$24,500 out of over $100,000 in payments, good proffit margins if you ask me.
I personally would like to see a reform in insurance policy and rates, the prudent and carefull contractors shouldn't bear the brunt of reckless ones and fraudelent claims.
Anyways, lets geet back to the debate...
Quick Thought: In roofing, risk is inevitable. The question is who shoulders it.
Argument for Insurance & Workers’ Compensation
Priority: Protection and professionalism.
Homeowner Liability Shield: Without insurance, homeowners may be held financially responsible for accidents or property damage on their site.
Worker Safety & Compensation: Injured roofers without coverage may face financial ruin. Workers’ comp ensures medical bills and wages are covered.
Credibility & Trust: Insurance reflects a contractor’s legitimacy and professionalism, setting them apart from underinsured competitors.
Legal Compliance: In most regions, insurance and workers’ comp are legal requirements, not optional add-ons.
Insight: Just as building codes protect occupants, insurance protects everyone involved in the project.
Argument Against Insurance & Workers’ Compensation
Note: A question of cost and redundancy.
Inflated Project Costs: Premiums raise operating expenses, which are passed to homeowners in higher bids.
Small Contractor Burden: Independent roofers or small firms may find premiums prohibitively expensive, limiting competition.
Overlap with Personal Coverage: Some argue that general liability or homeowner’s insurance already covers many risks, making separate contractor policies redundant.
Selective Risk Management: Critics claim safe practices, experienced crews, and careful site management reduce the need for costly insurance layers. Liabilty can be waiverd by clients to reduce costs.
Counterpoint: Is insurance a safeguard, or an industry-driven expense?
The Middle Ground: Practical Realities
Principle: Balance between cost and accountability.
While opponents question cost, accidents and liability cannot be ignored. Homeowners may save with uninsured contractors, but they assume significant risk. Conversely, contractors with comprehensive insurance may charge more, but they deliver peace of mind and compliance.
Pro Tip: The real debate is not about if risk exists, but who pays when it becomes reality.
Conclusion
The debate over roofing insurance and workers’ compensation reflects broader tensions in construction: cost versus protection, independence versus regulation, trust versus risk. For contractors and owners, the safest choice is clear—work with insured contractors. Yet the conversation highlights an important truth: every layer of protection, whether roofing or insurance, carries both value and cost, risk and reward.
Final Note: Whether you choose to work with uninsured or insured contractors, keep in mind the risks associated and learn to mitigate them as effectively as possible.
