Insurance and Licensing

Orientation — what this is

When a contractor shows up at a property to repair or replace a roof, the most important question to ask before they start is not about price — it is whether they carry the licenses and insurance that the work requires. This page explains why that distinction matters and what to verify before you move forward with planning your project.

An uninsured contractor at your property transforms what should be a protection into a liability if anything goes wrong.

That is not meant to scare. It is meant to clarify the one thing that separates a risky hire from a safe one.

The detail

Research from the Insurance Institute for Business & Home Safety shows that roof failure accounts for an estimated 70-90 percent of insured residential catastrophic losses in a typical year. That is what a documented inspection and maintenance record is built to protect against when a claim is filed.

But if the contractor who performs that maintenance or repair is not licensed or insured, the work itself becomes invisible to your insurer. A claim filed for damage that occurred after unlicensed work may be denied entirely. A contractor without liability insurance means that if their crew damages part of your property during the job, you cannot recover that cost through their coverage — you pay it yourself.

Licensing and insurance are not add-ons to the work. They are the proof that the work itself is valid in the eyes of your property, your lender, and your insurer.

The contractors we recommend carry both. They also maintain documentation that survives the life of the roof — permits, inspection reports, warranties, and proof of coverage that bridge the gap between “we did the work” and “we did it in a way your insurance company will recognize when you file a claim.” You can see these standards in practice in our project showcase, where documented work demonstrates how quality contractors handle both the job and the record-keeping.

Next step

Before you hire any contractor for roofing work, ask for three things: a current copy of their business license (call your state’s licensing board to verify it is active), a certificate of insurance showing general liability and workers’ compensation coverage, and a copy of their standard contract and warranty statement. If they hesitate to provide any of these, they are not the contractor to use, regardless of their price.

The reference table

Use this table to track what you have received from a contractor before signing anything:

Document	What it shows	How to verify
State or local business license	The contractor is registered and authorized to operate in your jurisdiction	Call your state’s Department of Labor or local licensing board; ask for the license number and verify it is active and in good standing
General liability insurance certificate	Their work is covered if they damage your property or cause injury on the job	Call the insurance company listed on the certificate; confirm the policy is active and the limits are adequate (typically $1 million minimum)
Workers’ compensation insurance proof	Their crew is covered for on-the-job injury; you are not liable	Call the carrier; verify coverage is active. Proof may be a “Certificate of Insurance” or a “Waiver of Subrogation” depending on your state
Roofing contractor license (if required in your state)	They have passed a trade-specific exam and maintain standards	Ask which license board — many states now require roofing-specific licensing. Verify through that board

Note: State and local requirements vary. New Hampshire requires roofing licenses for commercial work but recommends them for residential. Your town or county may require additional certifications. Ask your contractor what applies to your specific project — a question addressed in our guide on planning a roofing project.