We recently conducted a free policy review for a commercial roofing contractor who regularly performs re-roof projects on mid-rise condominiums—some up to 10 stories high. What we uncovered in their general liability policy was shocking: multiple exclusions that would’ve left them completely uncovered in the event of a claim.
What We Found:
1. Height Limitation (Over 3 Stories Excluded):
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This policy excluded any work over 30 feet above ground (approximately 3 stories). Yet the contractor was re-roofing condo buildings up to 10 stories tall.
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If a claim occurred during this type of work, coverage would have been denied entirely.
2. Open Roof Exclusion:
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The policy contained an exclusion for “operations involving open roofs,” specifically removing coverage if the roof is left unattended or not properly secured against adverse weather.
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This means any water damage caused by rain hitting an exposed roof could be denied, even if only temporary.
3. Absolute New Construction Exclusion:
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50% of this contractor’s business was installing roofs on newly constructed homes, yet their policy had a designated ongoing operations exclusion for all new construction.
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This is one of the most dangerous gaps to have, particularly for roofers working in booming residential markets.
4. Standalone Roofing Limitation:
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Coverage excluded standalone roofing (roofing work that wasn’t part of full general contracting or structural framing).
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For a contractor whose primary business is roofing, this effectively gutted their coverage.
5. Subcontractor Conditions:
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The policy also contained strict subcontractor insurance requirements, including the need for written agreements and COIs listing the roofer as additional insured—with matching limits.
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Failure to collect and document these properly would nullify coverage for any sub-caused incident.
Why This Matters:
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This contractor thought they were covered. They had no idea these exclusions existed because their agent never discussed the fine print.
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Policies like these are often presented with a low premium—but at the cost of massive exposure.
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Had a water intrusion or fall occurred on a 10-story condo during an open-roof install, the client would have faced the full claim out-of-pocket.
The Fix: We rewrote the policy with a specialty roofing carrier that:
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Covered work up to 15 stories
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Allowed for open-roof conditions with reasonable guidelines
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Included new construction exposure
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Matched their real-world operations, not a generic profile
