Welcome back! I’m Mike Di Pinto, Vice President of Construction Insurance at Ferrari & Associates. If you’ve already read my first article, “Why Is Roofing Insurance So Expensive?” thank you for continuing this journey. In that article, I outlined why roofing is considered such a high-risk profession and how these risks drive up insurance premiums. In this second part of my expert blog series, I’ll share practical strategies roofing contractors can lower roofing insurance premiums without sacrificing coverage.

The key to reducing insurance costs lies in proactive risk management. By prioritizing safety, strong claims practices, and utilizing discounts, you can establish a low-risk reputation and obtain better insurer rates.

How to Lower Roofing Insurance Premiums – Focus on Workplace Safety

Safety is more than just a legal obligation—it’s the cornerstone of lowering your premiums. As many roofer clients have noted, a safe workplace decreases the chances of accidents, claims, and costly disruptions. Here’s how they do it:

Encourage your workers to obtain Certificate of Qualification (CFQ) and Red Seal Certification. As mentioned in article one, investing in training and certification is a big way to show you are committed to safety. These certifications ensure your team has undergone rigorous training and meets the highest standards of the trade, both in safety and workmanship. Training workers in fall prevention, equipment use, and site-specific hazards helps avoid common mistakes that lead to claims. For example, drilling into live conduits or working near active gas lines can be catastrophic if workers are untrained.

In Ontario, earning a Certificate of Recognition (COR) through the WSIB is a game-changer. It demonstrates that your company has implemented a comprehensive health and safety management system. COR-certified companies often receive discounts from insurers and clients, as the certification proves their commitment to worker safety and regulatory compliance.

Over the years, I’ve seen new technology emerge that makes safety a priority. Technology like drones can be used to inspect roofs without putting workers at risk. Drones reduce the need for climbing, minimizing fall hazards and boosting safety records. By reducing workplace injuries and building a strong safety record, you create a positive risk profile, leading to lower insurance costs.

How to Lower Roofing Insurance Premiums – Maintain a Clean Claims History

Insurers assess your claims record to gauge the risk of insuring your business. No company is perfect, and while a spotless claims history is one of the most effective ways to keep premiums low, and be eligible for discounts and better renewal rates, there are a few ways roofing companies can prevent unnecessary premium hikes. 

Take care of your business by handling minor repairs internally. Reserve insurance claims for significant losses. Paying out-of-pocket for small repairs can prevent unnecessary premium hikes. Additionally, maintain detailed records of every incident, including photos, dates, and descriptions also ensures smooth claims processing and minimizes disputes.

As an insurance brokerage, Ferrari & Associates shops insurance companies for you. Many insurers offer discounts to roofing businesses that demonstrate safety, reliability, and professionalism. Working with a licensed broker like me is essential for ensuring you have the most comprehensive insurance coverage. I recommend combining general liability, workers’ compensation, and commercial auto insurance into one package, often leading to additional discounts.

I’ve seen firsthand that insurers reward companies that invest in safety training, equipment, and regular inspections and help highlight your safety protocols during policy reviews to maximize your savings as well. 

If you are a long-standing roofing company you likely know that roofing businesses with a long operational history and a strong reputation often qualify for better rates. If you don’t already, I encourage you to use testimonials or references to showcase your reliability.

How to Lower Roofing Insurance Premiums – Additional Tips

In my upcoming article, I will delve into the topic of torch roofing, a method that is not only intriguing but also carries significant risks. I will clearly explain what torch roofing entails, why it is considered a high-risk approach, and how it can impact your insurance premiums. It’s crucial for roofers to steer clear of high-risk methods, and I emphasize torch roofing specifically due to its association with increased risks and higher premiums.

Moreover, I will highlight safer alternatives, such as cold-applied systems, which can significantly reduce hazard exposure whenever feasible. By choosing these safer options, roofers can help protect their businesses and their clients.

Additionally, it’s worth noting that neglected roofs can often lead to preventable claims. In fact, some of my most successful roofing clients have implemented comprehensive maintenance programs. These strategies not only keep their clients’ roofs in good condition but also help mitigate liability exposure, ultimately benefiting all parties involved.

Reducing roofing insurance premiums requires proactive safety, effective claims management, and smart use of discounts. By implementing these strategies, you can save money while simultaneously enhancing your reputation as a reliable roofing contractor.

If you use high-risk methods like torch roofing, don’t miss the next article in this series. In it, I will provide valuable insights on how to effectively mitigate risks and manage your premiums. Safer roofing practices will lower roofing insurance premiums and improve financial outcomes for your business.