Commercial general liability (CGL) insurance is the single most important policy in a roofing contractor's insurance program. It covers third-party bodily injury and property damage claims that result from your business operations, your completed work, and certain advertising or personal injury offenses. Understanding exactly what falls inside and outside this coverage is critical because a single uninsured claim can shut down your business.
The premises and operations coverage within your CGL responds to claims that occur while your crews are actively working. If a bundle of shingles slides off a roof and strikes a passerby, your CGL pays for their medical bills, lost wages, and any resulting lawsuit. If your crew accidentally drops a tool through a skylight and damages the homeowner's hardwood floors below, that property damage claim is also covered. These are the day-to-day risks that make general liability non-negotiable for roofing contractors.
Products-completed operations coverage is a subset of CGL that protects you after you leave the job site. If a roof you installed six months ago develops a leak because of a flashing defect and causes $50,000 in water damage to the building interior, this is the coverage that responds. Completed operations claims are among the most expensive in the roofing industry because the resulting damage can be extensive and the liability period can stretch for years. Most CGL policies provide coverage for completed operations claims for up to the applicable statute of repose in your state, which ranges from four to twelve years depending on the jurisdiction.
Personal and advertising injury coverage handles claims like libel, slander, copyright infringement in your advertising, and wrongful eviction. While these claims are less common in roofing than in other industries, the coverage is automatically included in a standard CGL form and can become relevant if a competitor alleges you made defamatory statements or copied their marketing materials.
Medical payments coverage, often called "med pay," provides a small no-fault benefit, typically $5,000 to $10,000, to anyone injured on your premises or by your operations regardless of who is at fault. This coverage is designed to resolve minor injury claims quickly before they escalate into lawsuits.
Standard CGL policies for roofers typically carry limits of $1,000,000 per occurrence and $2,000,000 general aggregate, though you can purchase higher limits or add an umbrella policy to meet contract requirements. The per-occurrence limit is the maximum the insurer will pay for any single claim. The general aggregate is the total the insurer will pay across all claims during the policy period, excluding products-completed operations claims, which have their own separate aggregate.
Important exclusions apply. Your CGL does not cover damage to your own work, which is considered a business risk rather than an insurable risk. It does not cover injuries to your own employees, which falls under workers' compensation. Intentional acts, contractual liability outside of an insured contract, and pollution-related claims are also excluded on the standard ISO CGL form. Vehicle-related claims are excluded because they belong on your commercial auto policy. If you use subcontractors, your CGL can provide some protection if a sub causes damage, but only if you have not been required to add the sub as an additional insured on your own policy improperly.
To keep your CGL coverage intact, maintain accurate payroll and revenue records for your annual audit, report claims promptly, and require certificates of insurance from every subcontractor before they set foot on your job site. A gap in any of these areas can lead to coverage disputes when you need your policy most.