Roofing contractors continue to rank among the higher‑hazard trades for insurers, with hot work related fire and water damage driving some of the most severe losses, according to Brian Mahoney (pictured), commercial lines manager at SWG Specialty.
Mahoney said the firm underwrites a broad spectrum of roofing risks, from shingle‑only operators to roofers performing cold‑applied systems and full hot-work torch-on jobs. The underlying exposure profile, however, is far from uniform.
“Roofing is a high-hazard trade, largely because of fire risks from hot work such as torch-on roofing,” he said.
For hot‑work roofers, fire is the primary concern. Flames can ignite building materials during the job, or smouldering embers can trigger a blaze hours after crews leave. On a multi-million‑dollar structure, the severity potential is obvious.
“If you’re working on a five-million-dollar building, and [it] catches fire either during the work or afterward, the potential claim severity can be very high,” Mahoney said.
Water damage is a common thread across all roofing segments. Leaks from improperly installed systems, or weather intruding on partially completed jobs, can lead to costly repairs and business interruption.
“Water damage is a risk for all types of roofing work, whether you’re installing shingles or performing hot work,” he said. “It can occur after the job is completed or even during multi-day projects, when tarps are in place, but storms can tear them away.”
In winter, some roofers handle emergency work, adding the risk of snow‑load-related roof collapse to the mix. Even small defects can go unnoticed until water finds its way into the building and mould develops in attics or cavities over time.
From a liability standpoint, these are largely completed operations exposures. Mahoney said CGL policies are intended to respond to third‑party property damage and bodily injury linked to the roofing work, whether that is a fire, water ingress or falling objects such as tools or equipment dropped from a roof onto vehicles below.
The key differentiator, in his view, is how hot work is treated in the policy wording. Roofers performing torch-on and similar activities will typically face specific hot‑work warranties, including fire‑watch requirements.
“Hot-work warranties include a fire watch, requiring someone to remain on site for one or two hours,” he said. “We have two different wordings that apply depending on the size of the company, so the fire watch requirement may be either one or two hours.”
Those conditions generally require one or more employees to remain on site after hot work is completed to monitor for any signs of ignition. Mahoney said roofers should also document that fire watch period, much like snow contractors are encouraged to keep detailed logs.
Burning and welding warranties may also set out specific precautions for using torches, welders and other heat-producing equipment. Non-compliance can put the cover at risk if a loss occurs.
At the other end of the spectrum, shingle-only roofers often carry policies that explicitly exclude hot work. That becomes a problem if a contractor quietly begins taking on torch‑on jobs without updating their insurer or broker.
“If a company primarily does shingles, their policy usually excludes hot work,” Mahoney said. “They need to be careful if they start taking on hot-work projects without updating their coverage.”
He has not personally seen a case where a roofer was caught out by a hot‑work exclusion after changing its operations, but said the potential is real – particularly where businesses expand services informally.
When shopping for coverage, Mahoney said roofers should focus first on matching policy scope to what they actually do, then on understanding their obligations under warranties.
“They should make sure they have comprehensive coverage for the activities they perform, such as hot-work roofing,” he said. He recommended obtaining copies of wordings and warranties so contractors “fully understand what’s covered and what responsibilities they have.”
Beyond core CGL and property, he noted that some wordings offer useful sublimits such as limited pollution, faulty workmanship or employment practices and employer’s liability cover. These can add value but should not distract from getting the fundamentals right.
Ultimately, Mahoney said, the severity of roofing losses – particularly fire and major water damage on high-value buildings – sets the trade apart from many others.
“Roofing carries a significant completed-operations exposure,” he said. “Compared with other trades, it presents a higher potential severity for claims.”
