National Roofing Legal Resource Center

Contract provision addresses roofing contractor's property insurance

This month's contract provision is intended to be added to a roofing contractor's proposal terms and conditions. Settling the parties' agreement regarding insurance helps prevent disputes or disappointed expectations down the road. In particular, this provision requires the owner to supply builder's risk and property insurance protecting the roofing contractor's materials and equipment during construction, which puts the onus on the owner to reach out to the roofing contractor if he or she wishes to alter this requirement. If the owner does want to change the requirement, the roofing contractor not only is alerted to the issue, but he or she also is provided with an opportunity to increase the price to reflect additional premiums for such insurance.

Property insurance: Contractor shall carry workers' compensation, automobile and commercial general liability (bodily injury and property damage) insurance. Contractor will furnish a Certificate of Insurance, evidencing the types and amounts of its coverages, upon request. Customer shall purchase and maintain builder's risk and property insurance, including the labor and materials furnished by Contractor, covering fire, extended coverage, malicious mischief, vandalism and theft on the premises to protect against loss or damage to material and equipment and partially completed work until the job is completed and accepted.


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