Builders Risk Insurance for Commercial Roofing Contractors

CP 00 20 — Builders Risk Coverage Form

This ISO form provides property coverage for buildings under construction, including materials, equipment, and fixtures that become part of the structure. For roofing contractors, this primarily matters on new construction projects where you are the GC or on large re-roofing projects where the existing structure undergoes significant modification. The form covers the structure and materials against fire, wind, theft, and vandalism during the construction period. Roofers should confirm that roofing materials stored on-site and in-transit are included.

Soft Costs Endorsement

When a covered loss delays a roofing project, soft costs coverage reimburses expenses that continue to accrue — loan interest, additional architect fees, permit renewal costs, and extended general conditions. For commercial roofing projects with tight deadlines and penalty clauses, a two-month delay from a fire or windstorm can generate $50,000-$200,000 in soft costs. This endorsement is often overlooked but can be the difference between a manageable claim and a project that bleeds cash.

Testing and Startup Coverage

For roofing projects involving complex systems — such as green roofs with irrigation, solar panel installations, or rooftop HVAC integration — this endorsement covers damage during system testing. Standard builders risk excludes damage arising from testing, which creates a gap precisely when expensive components are most vulnerable.

Ordinance or Law Coverage Endorsement

If a partially completed roofing project suffers a covered loss and local building codes have changed since the permit was issued, this endorsement covers the increased cost to rebuild to current code. For roofers, this commonly applies to wind uplift requirements, fire rating standards, and energy efficiency mandates that can add 15-30% to reconstruction costs.

Zurich

Zurich is a dominant builders risk carrier for large commercial roofing projects exceeding $10M in total project value. They offer single-project and master builders risk programs with limits up to $500M. Zurich's policies include built-in soft costs coverage up to 10% of the project value and debris removal coverage at actual costs incurred. Their underwriting requires detailed project timelines, contractor qualification packages, and structural engineering reports. Zurich's appetite for wood-frame construction during roofing phases is more conservative than competitors.

Hartford

Hartford writes builders risk for small to mid-size commercial roofing projects ($500K-$20M) and offers a reporting-form policy that adjusts coverage as the project progresses. This is cost-effective for roofers working on phased projects. Hartford includes theft coverage without the secured-premises requirement that some carriers impose, which benefits roofing contractors on open jobsites. Their flood and earthquake sublimits are modest — typically $250,000 — requiring separate policies in high-hazard zones.

Travelers

Travelers offers both project-specific and annual builders risk programs for roofing contractors. Their annual program is ideal for contractors working multiple projects simultaneously, eliminating the need to bind separate policies for each job. Travelers includes an automatic acquisition clause covering new projects up to $5M without prior notice. Their water damage coverage — critical for re-roofing projects where the building is exposed — is broader than most competitors and does not exclude wind-driven rain during construction.

FCCI

FCCI writes builders risk for Southeast roofing contractors on projects up to $15M. Their policies are competitively priced and include installation coverage that overlaps with inland marine — simplifying the insurance program for roofers who might otherwise need both policies. FCCI's hurricane deductible in coastal zones is 5% of the completed value, which is standard but can represent a significant out-of-pocket expense on high-value projects. They require hurricane preparedness plans for all projects within 50 miles of the coast.

$620,000 — Fire During Torch-Down Application, Miami, FL

During a modified bitumen torch-down roof application on a new two-story commercial building, the open flame ignited underlying insulation and spread through the structure. The fire caused $620,000 in damage to the partially completed building, destroying framing, electrical rough-in, and mechanical systems. The builders risk policy covered the full loss minus a $5,000 deductible. The roofing subcontractor's GL policy also faced a subrogation claim from the builders risk carrier. The project was delayed four months, and the soft costs endorsement paid an additional $85,000 in carrying costs.

$290,000 — Wind Damage to Exposed Structure, Oklahoma City, OK

A severe thunderstorm with 70 mph winds struck a commercial building mid-construction while the roofing contractor had removed 40% of the existing roof for replacement. The exposed interior suffered extensive water damage to drywall, flooring, and stored tenant improvements. The builders risk policy paid $290,000 for interior repairs and material replacement. The claim highlighted the importance of weather monitoring and temporary protection protocols during roof removal phases on occupied buildings.

$148,000 — Material Theft from Construction Site, Las Vegas, NV

Over a three-day weekend, thieves stole $148,000 worth of copper roofing panels and custom guttering from an unsecured construction site. The builders risk policy covered the theft, but the claim triggered a requirement for 24-hour security on subsequent projects. The project schedule slipped three weeks waiting for replacement copper panels to be fabricated, and the soft costs coverage paid $32,000 in extended general conditions and loan interest. The total claim reached $180,000 and prompted the contractor to install GPS tracking on high-value material shipments.