Roofing Insurance Costs for Roofers: Everything Explained in 2025
Aug 30, 2025
Roofing insurance is a necessity for every contractor and employee. According to Illinois Law, you cannot work on a roofing project without the necessary insurance. In fact, you cannot even get a valid license without showing proof of insurance.
Surprisingly, roofing insurance costs can vary between $1,000 and $100,000, depending on your operations. In this guide, we break down the insurance costs for roofing contractors. We also list a trick to help you get the best rates.
Costs of Roofing Contractor Insurances
You can expect to pay quite a penny for all the different insurances you'll need as a roofing contractor. We collected the average monthly rate for individuals and businesses to make your life easier. Here's an overview:
| Type of Insurance | Individual Roofer (Solo Contractor) | Mid-Sized Roofing Company (10–20 workers) |
|---|---|---|
| General Liability | $1,500 – $3,000 per year ($125 – $250/mo) | $7,000 – $15,000 per year ($600 – $1,250/mo) |
| Workers’ Compensation | $3,000 – $6,000 per year ($250 – $500/mo) | $20,000 – $50,000 per year ($1,600 – $4,200/mo) |
| Commercial Auto | $1,200 – $3,500 per year ($100 – $300/mo) | $10,000 – $30,000 per year ($850 – $2,500/mo) |
| Inland Marine / Tool & Equipment Coverage | $300 – $1,000 per year ($25 – $85/mo) | $5,000 – $12,000 per year ($420 – $1,000/mo) |
| Professional Liability (E&O) | $1,000 – $2,500 per year ($85 – $210/mo) | $5,000 – $10,000 per year ($420 – $850/mo) |
| Umbrella / Excess Liability | $750 – $1,500 per year ($65 – $125/mo) | $5,000 – $20,000 per year ($420 – $1,600/mo) |
Different insurance companies will charge varying premiums and monthly payments for each insurance policy. Some offer more extensive coverage while others are more affordable. You should analyze your risk profile and choose a suitable provider with the right type of coverage.
Quick Overview of Roofing Insurance Types
Here's a quick overview of different insurances for roofing contractors and roofers:
| Insurance Type | Insurance Coverage | Usefulness |
|---|---|---|
| General Liability Insurance | Covers third-party bodily injury, property damage, and advertising injury related to business operations. | Often required for licensing in Illinois and commonly needed for client contracts or permits. |
| Workers’ Compensation Insurance | Pays for employee medical treatment, lost wages, and disability after job-related injuries or illnesses. | Mandatory in Illinois for businesses with employees. Even sole proprietors are advised to consider it. |
| Commercial Auto Insurance |
Covers work vehicles, like pickups, transport vans, including liability, collision, theft, and driver protection. |
Required for business auto use. Includes hired/non-owned coverage if using leased or personal vehicles. |
| Tools and Equipment & Inland Marine Insurance | Protects tools, machinery, and materials in transit or on-site against theft, damage, or loss. | Often necessary due to frequent equipment transport in roofing work. Inland marine is the formal term. |
| Builder’s Risk Insurance | Covers buildings under construction, including materials, from fire, vandalism, theft, or certain perils. | Useful if contractors contractually assume responsibility for construction risks. Often required for renovation projects. |
| Commercial Umbrella Insurance / Excess Liability | Offers additional coverage when primary liability limits are exhausted. | Valuable for high-risk roofing claims exceeding standard policy limits. |
| Business Owner’s Policy (BOP) | Bundles general liability and property coverage into one cost-effective package. Only for businesses with <100 employees and <$1M revenue. | Helps streamline coverage for smaller operations—check details for roofing-specific exposures. |
| Professional Liability Insurance (Errors & Omissions) | Covers claims of negligence or faulty workmanship not involving physical injury or property damage. | Helpful when design or specification errors lead to financial loss, though not always standard for roofers. |
| Business Interruption and Commercial Property Insurance | Protects physical business property and covers income loss during downtime. | Useful if you own or rent buildings (e.g., material storage); interruption coverage mitigates downtime losses. |
You will not need all of these insurances, especially if you work on only commercial or residential roofing projects. Two insurance policies that you'll always need are General Liability and Workers' Compensation.
General Liability Insurance
It's a basic insurance policy that covers bodily injuries and property damage that might happen because of your roofing project. General Liability is like a seatbelt; you won't always need it, but the one time you need it and don't have it could lead to the worst-case scenario.
Workers' Compensation Insurance
One reason why businesses fail during their first five years is worker compensation disputes. Having the right coverage limits for a workers' compensation policy can safeguard your business and wallet.
Tools and Equipment Insurance
Getting tools and equipment insurance is a necessity if you've started a roofing business recently. Roofing tools like ladders, nail guns, harnesses, pressure guns, etc, aren't disposable. Having the right insurance can help you reduce their replacement costs
Surety Bonds and Roofing Contractors
One wildcard entry for every roofing contractor is a surety bond. These are different from roofing insurance because they serve as a client guarantee. These are safety nets for clients, in case a project goes awry and the client demands a refund.
These are monetary bonds of varying values that are mandatory for some large-scale or commercial projects. You will acquire these bonds through a third-party provider. If you fail to finish the project, the third party will award the bonds to the client as compensation.
In Illinois, you usually need a $10,000 surety bond for residential and $25,000 bond for commercial roofing licenses. You cannot operate a roofing business or acquire a license without these bonds.
How Can You Reduce Insurance Costs
Insurance costs can stack up and strangle your wallet. Fortunately, there are a few things we do to reduce these costs:
- Shop Around and Compare Quotes: Insurance rates vary widely among carriers. Reach out to multiple insurers, compare insurance quotes, and find the most affordable option.
- Bundle Coverage with a Business Owner’s Policy (BOP): You can get discounts by acquiring general liability, business interruption, and property insurance through a BOP.
- Join Industry or Trade Associations: Joining an association might get you group-rate discounts on workers' compensation or liability through collective bargaining.
- Pay Premium Upfront: Paying your annual premium upfront can sometimes warrant a discount, depending on the provider. Talk to your insurance agent or provider to find out if it's a possibility.
- Multi-Policy Discounts: You get a multi-policy discount if you work on both commercial and residential projects. You'll find these upgrades more easily with a local insurer.
FAQs on Insurance Costs
What is the best insurance for a roofing contractor?
The best insurance for a roofing contractor is general liability insurance because it protects against property damage and injury claims. Contractors also need workers’ compensation to cover employee injuries, commercial auto for work vehicles, and tools and equipment coverage.
Can you get an Illinois roofing license without insurance?
No, you cannot get an Illinois roofing license without having General Liability and Workers' Compensation insurance. In addition to these, you also need to get a surety bond of $10,000 or $25,000 before acquiring a license.
What is the most important roofing business insurance?
Workers' compensation is one of the most important insurance policies for businesses. Numerous new roofing businesses fail because of worker compensation issues. Having this insurance will keep your workers and business safe from litigation.
Bottom Line on Roofing Insurance Costs
Insurance for roofers can cost around $1,000 per month, while insurance for businesses can cost around $10,000 or more. These costs can change based on the insurance company and local requirements.
For example, one requirement for an Illinois roofing license is acquiring General Liability and Workers' Compensation insurance. Other states might not have the same requirements. That's why you should check your local requirements.
Finding the right insurance provider isn't easy or cheap, which is why we make things easier. We have connections with trusted insurance providers, vendors, wholesalers, and distributors. Join the Illinois Roofing Institute today to get your license and the best insurance recommendations.