"Am I going to be receiving huge increases in my insurance
premiums again?" "Is the insurance industry getting any better?"
These are questions roofing contractors are asking themselves this
year. It's typical for the insurance industry to go through cycles,
but this "hard" market has been unusually lengthy. The roofing
class of business has suffered more than many other classes, so
roofing contractors welcome any premium relief.
In addition, the insurance marketplace, in general, has changed
for roofing contractors. Many roofing contractors in certain
states, such as New York, were forced to move from admitted
carriers (an insurance company authorized to do business in a
state) to excess and surplus lines carriers (insurers that are not
licensed to conduct business in a particular state but are
permitted because coverage is not available through licensed
insurers). Such insurers generally write coverage for riskier
classes of business that admitted carriers don't want to cover.
Insurance agents now have become familiar with the excess and
surplus lines market, and industry experts advise the excess and
surplus lines market will not be going away anytime soon though
there has been somewhat of a shift for commercial contractors from
excess and surplus lines insurers back to admitted carriers.
Agents' mentality has changed to accept the excess and surplus
lines as a more common and viable market. Although admitted
carriers always were the first choice and excess and surplus lines
carriers were used as a one-time situation, there no longer is a
significant distinction between placing a contractor with an
admitted carrier vs. an excess and surplus lines carrier.
Statistics from the insurance industry and rating agencies
indicate that, as a whole, insurance companies are showing improved
underwriting and net income results as of 2003. 2001 seems to
To read the article in its entirety, please log in or register (registration is free).
Log in or register for FREE access to this article and other Professional Roofing online content.