This is probably the question we get asked more than any other, and the honest answer is "it depends," but that's not very useful if you're trying to budget for the year. So let's actually talk numbers and what actually moves them up or down.
Why roofing costs more than other trades
General liability insurance is priced based on risk, and roofing sits near the top of the list for construction trades. You're working at heights, dealing with steep slopes, hauling heavy materials up and down ladders, and often working around other trades and homeowners at the same time. Insurance companies know this, so roofing contractors typically pay more per dollar of revenue than, say, an interior painter or a handyman would.
What actually drives your premium
A few things matter more than anything else when a carrier is putting together your quote:
Your revenue. General liability is usually priced per $1,000 of payroll or revenue, so a bigger operation naturally pays a bigger premium, though the rate itself might actually improve as you grow and show a track record.
Your claims history. If you've had a couple of clean years with no claims, you're in a much better position than a contractor with a recent lawsuit or a big property damage claim on file.
Steep slope vs low slope work. Carriers care a lot about this. If most of your jobs are low slope commercial roofs, you'll typically see better pricing than a contractor doing mostly steep residential tear offs.
New construction vs repair and replacement. Some carriers price these differently, and a few won't touch new construction roofing at all.
How long you've been in business. Newer contractors tend to pay more simply because there's less history for the carrier to base a rate on.
So what's a real number?
For a small to mid size residential roofing contractor in Indiana, Illinois, or Michigan, general liability premiums often land somewhere in the range of a few thousand dollars a year, but we've seen it run higher for larger crews doing steep slope work, and lower for smaller operations focused on repairs and low slope commercial roofs. Anyone who gives you an exact number without knowing your revenue, claims history, and the type of roofing you actually do is guessing.
Don't forget the extras that GCs ask for
A lot of roofing contractors are surprised when a general contractor's insurance requirements ask for things like a $2 million aggregate limit, additional insured endorsements, or waivers of subrogation. These aren't unusual asks, but they can affect your premium, and it's worth knowing about them before you're mid negotiation on a contract and scrambling to get your policy adjusted.
The bottom line
If you want a number that actually means something for your business, it comes down to sitting down with someone who can look at your revenue, your claims history, and the type of roofing work you do, and shop it against multiple carriers who actually understand roofing risk.
That's exactly what we do here at Shurr Insurance for roofing contractors across Indiana, Illinois, Michigan, and other surrounding states. Reach out and we'll get you a real quote, not a guess.
This blog post is provided for general informational purposes only and does not constitute insurance, legal, or financial advice. Coverage availability, terms, and requirements vary by policy, insurer, and state law. Please contact Shurr Insurance Agency directly to discuss your specific business needs and to review actual policy terms and conditions before making any insurance decisions.