Plan Insurance Blog

Rising Cost of Insurance: A Crippling Challenge for Roofing Contractors

In the construction industry, roofing contractors play a vital role in completing projects efficiently and effectively. However, these companies are currently facing a significant challenge that threatens their viability and profitability: the soaring cost of their business insurance. This blog explores the increasing insurance premiums for roofing contractors and examines how this potentially crippling financial burden for their businesses can be tackled.

Understanding the Importance of Insurance

Insurance coverage is crucial for any construction-related business, and roofing contractors are no exception. These policies protect contractors from potential liabilities arising from accidents, property damage, or injuries that may occur on job sites. Insurance coverage ensures that contractors can fulfill their contractual obligations and safeguards against potential legal and financial risks.

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Insurance prices going through the roof

In recent years, roofing contractors have experienced a dramatic surge in insurance premiums. Several factors contribute to this upward trend:

Increased Claims: The roofing industry is prone to accidents and property damage due to the nature of the work involved. Insurance companies have experienced a rise in claims from roofing contractors, leading them to increase premiums to maintain profitability.

Rising Material Costs: The cost of roofing materials has skyrocketed, driven by factors such as inflation, supply chain disruptions, and increased demand. Insurance companies’ factor in these rising prices when calculating premiums due to the potential cost of reinstating a building to the required condition following a claim, further burdening contractors.

Litigation and Fraud: The construction industry, including roofing contractors, is susceptible to litigation and fraudulent claims. Insurance companies must account for the cost of handling these claims, leading to higher premiums for all businesses operating in the sector.

Climate Change: The increase in extreme weather events linked to climate change, such as hurricanes, hailstorms, and heavy rainfall, has led to a surge in insurance claims for roofing contractors. Insurers respond by adjusting premiums to mitigate their risks.

The Crippling Effect on Roofing Contractors

The mounting insurance costs have severe implications for roofing contractors:

Reduced Profit Margins: Higher insurance premiums erode profit margins, making it challenging for contractors to remain competitive. As premiums increase, contractors must either absorb the added costs or pass them onto their clients, potentially losing business to competitors, as a result.

Financial Strain: The burden of rising insurance costs can strain the financial resources of roofing contractors, particularly small and mid-sized businesses. These companies may struggle to afford their insurance policies, leading to reduced coverage or even the inability to secure coverage at all.

Limited Growth Opportunities: Increased insurance premiums can hinder business growth for roofing contractors. The financial strain restricts their ability to invest in new equipment, technology, or employee training, limiting their competitiveness in the market or the contracts they may be able to accept.

Loss of Skilled Workers: As contractors face financial difficulties, they may be unable to offer competitive salaries and benefits packages to attract and retain skilled workers. This loss of talent can further impede the ability to deliver high-quality services, exacerbating the challenges faced by the contractors.

Finding Solutions

To address the crippling impact of rising insurance costs, roofing contractors can consider several strategies:

Risk Management and Safety Programs: By implementing robust risk management and safety programs, contractors can reduce accidents and property damage, leading to fewer insurance claims and potentially lower premiums.

Collaboration and Industry Advocacy: Contractors can join industry associations and organisations that advocate for their interests. Collaborative efforts can help address the root causes of rising insurance premiums, such as lobbying for regulatory reforms or promoting risk reduction initiatives.

Diversification and Specialisation: Contractors can explore diversifying their services or specialising in specific roofing segments. This approach can help mitigate risks associated with insurance premiums by targeting markets with lower insurance costs or focusing on specialised areas that command higher contract values.

Shop Around: Contractors should explore multiple roofing insurance providers to find the most competitive premiums. Working with insurance brokers who specialise in the construction industry can help identify policies that offer comprehensive coverage at more affordable rates.


The rising cost of insurance is potentially reaching a tipping point for many roofing contractors. The combination of increased claims, rising material costs, climate change impacts, and litigation risks has resulted in skyrocketing premiums, placing substantial financial burdens on these businesses. To overcome these challenges, contractors must adopt proactive risk management strategies, explore insurance options, and consider diversification or specialisation.

By doing so, they can navigate the insurance landscape more effectively, protect their businesses, and ensure long-term sustainability in an increasingly challenging industry. As a truly independent, family owned and operated business, we have been providing insurance solutions to the roofing sector for well over 30 years.

We are well placed to provide your business with a bespoke set of insurance arrangements that are both compelling and competitive, ensuring that your business, bottom line and reputation are all protected.

Get in touch with us today for a confidential and free of charge quotation for your Roofing Business Insurance, call 0203 319 2961 or email

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