About half of NRCA members are preparing to renew their
insurance policies this month—a task most face with the same
amount of glee as, say, doing punch-list work for the average
For a typical roofing contractor, insurance is the third-largest
item in the operating budget—right behind labor and
materials. According to NRCA financial management surveys,
insurance of all kinds accounts for an average of 7 percent of a
roofing contractor's total expenses. (By comparison, NRCA's
insurance costs account for about 8/10 of 1 percent of its
Unfortunately, many NRCA members will have trouble getting a
quote this year, especially if they do business in New York or
California, do a lot of residential work or have a history of
losses. And being in the roofing contracting business without
insurance is like going to a nude beach without sunscreen: There
are just too many bad things that can happen.
So roofing contractors must approach buying insurance the same
way they expect building owners to buy a roof. That is to say,
value matters. The lowest-priced commodity product isn't always the
best. The history and reputation of the company being considered
are important. And an insurance purchase should be part of a
long-term relationship rather...
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