How We Protect Our Clients

Given today’s legal environment, property owners must protect themselves by requiring roofing contractors to carry adequate insurance coverage. Roofing is a high risk classification, making insurance costs a considerable expense. For this reason, many contractors carry only the minimums mandated by the state or none at all. In fact, insurance is not even required by the state for roofing contractors, which may expose a property owner to unforeseen liabilities. It is very important to request and review a potential contractor’s insurance to be certain that you, the consumer, are properly covered.

General Liability

This coverage protects you if your contactor were to damage your property i.e. catches the home or business on fire. It also covers bodily injury and property damage to others who may be on your property if they are hurt by the contractors operations i.e. a hammer falls off the roof and strikes them. This coverage is not required under Texas Law for roofing contractors.

American Pride Roofing’s Coverage:$3,000,000

Completed Operations

Once the contractor completes their work and leaves the property, this covers damage that could occur which was caused by their work i.e. the inside of your home get’s damaged due to excessive water leaking. This coverage is not required under Texas Law for roofing contractors.

American Pride Roofing’s Coverage:$1,000,000

Builder’s Risk

Once the contractor completes their work and leaves the property, this covers damage that could occur which was caused by their work i.e. the inside of your home get’s damaged due to excessive water leaking. This coverage is not required under Texas Law for roofing contractors.

American Pride Roofing’s Coverage:$50,000

Business Interruption Insurance

If a disaster occurs and damages or ruins a contactor’s ability to operate normally, this coverage provides the needed cash to cover expense so that they can continue as a business. This helps to ensure that your project will be successfully completed. This coverage is not required under Texas Law for roofing contractors.

American Pride Roofing’s Coverage:$25,000

Workers Compensation Employers Liability

Workers compensation insurance, which is not required for roofers under Texas law, covers lost wages and medical expenses for an injured worker and generally precludes the injured from filing a civil suit for damages. However, if employer negligence is found to be the cause of the injury i.e. requiring workers to use unsafe equipment or to work in what OSHA deems an unsafe work environment, then the employee is allowed civil litigation which is not covered by standard workers compensation insurance. For this protection, Employers Liability must be added to the standard policy. If your contractor lacks this additional policy, then the building owner’s insurance could be held liable. This coverage is not required under Texas Law for roofing contractors.

American Pride Roofing’s Coverage:$1,000,000

Automobile Insurance

This is the most overlooked area of contactors insurance. If a contractor were to hit someone on your property with their automobile, this policy provides coverage for damage to their person and their automobile. Texas Law requires $50,000 for Bodily Injury and $25,000 for Property Damage.

American Pride Roofing’s Coverage:$1,000,000

Performance and Payment Bond

A performance and payment bond (P&P Bond) is a guarantee by an insurance company (Surety Company) that a project will be completed in the event of default by a contractor. It further guarantees that the costs for labor and materials will be paid and that no liens will be placed on your property. If a contractor defaults, the Surety Company takes the project over and does whatever is required to complete it. In short, a P & P Bond guarantees a lien free, completed project, build to plans and specification, at no additional expense to the owner.

One of the most effective methods of determining the overall stability of a contractor is to check their bonding capabilities. A surety company maintains a staff of construction accounting specialist and construction management experts that scrutinize various aspects of a contractor’s business. This examination is considered unparalleled in the construction industry. Their construction risk management team reviews numerous financial ratios, based on a contractor’s audited financial statements, in an effort to eliminate the risk that the Surety may have to pay a claim.

Our Bonding Capacity

• Single Job: $5 Million
• Aggregate: $10 Million

Industry Bonding Statistics

• Approximately 50% of all surety companies will not bond roofing contractors.
• Only 10 to 20 percent of all roofing contractors can qualify for a performance bond.
• Less than 10% are insured by an “A” rated Surety.
• 80% are limited to $1 million or less.
• Fewer than 7% have a $10 million aggregate limit.