UPDATED FOR 2026
Why Your Contractor's Insurance Might Not Cover You (Even Though They're Licensed)
Welcome to County Roofing’s “Roofing Industry Scams Uncovered”, a series designed to shine a light on untrustworthy practices within the roofing industry.
This series is designed to empower consumers by increasing awareness of unlawful or wrongful practices we’ve seen throughout our 35 years serving Long Island and the greater New York area with roofing services based on integrity and trust.
Key Takeaways:
- Licensing agencies only verify a policy exists—not exclusions or whether coverage applies to your project.
- Ghost policies provide certificates but exclude the owner from coverage, leaving you liable if workers get hurt.
- Trade-specific exclusions void coverage even when a contractor has insurance—general policies often exclude roofing work.
- Verify coverage directly with the insurance producer listed on the certificate, not just the contractor.
- Request Additional Insured status for major projects so you’re notified if coverage gets cancelled.
You checked the contractor’s license.
You requested their Certificate of Insurance.
Everything looked legitimate.
But here’s the truth: a licensed contractor with insurance doesn’t guarantee you’re protected from financial disaster. Licensing agencies only verify that a policy exists—not what it actually covers.
Below, we’ll show you how to spot the insurance gaps that leave homeowners liable for accidents and damages.
Why Licensing Agencies Don’t Protect You
Most homeowners think licensing requirements ensure adequate insurance coverage.
They don’t.
What Licensing Boards Actually Check
State licensing agencies verify basic information at the time of licensure.
They confirm:
- A valid policy number exists
- The policy is active on the application date
- Minimum coverage requirements are met
That’s it.
They don’t review policy exclusions. They don’t audit endorsements. They don’t verify that the coverage actually applies to the specific work being performed.
A contractor can hold a valid license while carrying insurance that won’t cover your project at all.
The “Ghost Policy” Problem
One of the most common insurance scams is the workers’ compensation ghost policy.
This is a policy designed for sole proprietors with no employees—it provides a Certificate of Insurance but excludes the business owner from coverage. Some contractors use these policies even when they have crews working on your property.
Here’s what happens when someone gets hurt.
The injured worker sues you—the property owner—because the contractor’s ghost policy doesn’t cover anyone. You’re on the hook for medical bills, lost wages, and potential long-term disability costs.
The contractor had insurance. You verified it. But you’re still paying the lawsuit.
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Common Insurance Exclusions That Leave You Exposed
Insurance policies are filled with exclusions that void coverage for specific activities.
You won’t find these by looking at a Certificate of Insurance.
Trade-Specific Exclusions
A general contractor’s liability policy might exclude roofing work entirely.
If your “handyman” offers to fix your roof for cheap and someone gets hurt, his general liability policy could deny the claim because it has a “roofing work exclusion.”
You need contractors whose insurance classification matches the work being done. A roofing contractor needs a roofing policy—not a general policy with residential roofing excluded.
Action-Over Exclusions
Many workers’ compensation policies include “action-over” clauses.
These prevent coverage if an injured employee decides to sue the property owner directly. Without proper coverage, you could be personally liable even though the contractor has workers’ comp.
Height And Residential Exclusions
Some policies exclude work above certain heights—3 stories, for example.
Others exclude all residential work, covering only commercial projects. If your contractor’s policy excludes residential roofing and they fall off your roof, guess who gets sued?
You do.
How To Verify Real Coverage Before Work Starts
Don’t rely on licensing agencies to protect you.
You need to manually verify roofing insurance coverage yourself.
Request A Certificate Of Insurance Directly
Get the Certificate of Insurance (COI) straight from the contractor’s insurance agent—not from the contractor themselves.
A legitimate COI includes:
- The producer’s name and contact information (Block 2)
- Active policy dates
- Coverage types and limits
- Description of operations
Call the producer listed on the certificate.
Confirm the policy is current and in good standing. Ask if the policy covers the specific type of work being performed on your property. Make sure you’re listed as “Additional Insured” for major projects.
Check The Description Of Operations
The bottom section of a COI should describe what operations are covered.
If it says “General Contracting” but doesn’t specifically mention roofing, that’s a red flag. Look for language like “Residential Roofing” or “Commercial Roofing” to confirm coverage.
If you see any exclusions listed—”Excludes residential work” or “Excludes work above 2 stories”—that policy might not cover your project.
Verify Workers’ Compensation Coverage
For workers’ comp policies, you need to confirm:
- The contractor and their employees are covered (not excluded)
- The policy is current and hasn’t lapsed
- Coverage extends to subcontractors if they’ll be working on your property
A ghost policy lists $0 payroll and excludes the owner.
If you see that on a certificate for a contractor showing up with a 4-person crew, something’s wrong. Those workers probably aren’t covered—and you could be liable if they’re injured.
Request Additional Insured Status
Being named as “Additional Insured” triggers specific protections.
If the contractor’s insurance gets canceled mid-project, the insurance company must notify you. If a claim is filed, you have direct rights under the policy.
For any project over $5,000, request additional insured status in writing.
What County Roofing’s Insurance Actually Covers
County Roofing Systems carries comprehensive roofing insurance designed specifically for roofing work.
Here’s what that means for you.
Trade-Specific Coverage
Our general liability policy is written for roofing contractors.
It covers:
- Residential roofing work
- Commercial roofing work
- Property damage during installation
- Completed operations liability
- No height exclusions
We’re not trying to make a general contractor’s policy cover specialized work. Our insurance is designed for exactly what we do.
Workers’ Compensation That Actually Covers Workers
Our workers’ comp policy covers every member of our team.
No ghost policies. No owner exclusions. If someone on our crew is injured on your property, our insurance covers their medical bills and lost wages—not you.
We carry minimum coverage of $1 million per occurrence, with higher limits available for commercial projects.
Additional Insured Endorsements
For larger projects, we automatically add property owners as Additional Insured parties.
That gives you direct rights under our policy and ensures you’re notified if coverage changes. You’re protected throughout the entire installation process—and for completed operations afterward.
Verify Our Coverage Yourself
We encourage homeowners to verify our insurance independently.
Call our insurance producer. Check our policy details. Confirm we’re properly covered for your specific project.
We’ve been in business for over 35 years because we do things right—including carrying the proper insurance to protect both our team and our customers.
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Red Flags That Signal Insurance Problems
Watch for these warning signs before you hire.
Reluctance to provide documentation.
Legitimate contractors provide Certificates of Insurance immediately. If someone hesitates, makes excuses, or delays providing documentation, walk away.
COI provided directly by the contractor (not the agent).
This makes fraud easier. Always request documentation straight from the insurance producer.
Vague coverage descriptions.
“General contracting” or “Construction” aren’t specific enough. You need to see your type of project explicitly covered.
No contact information for the insurance producer.
A valid COI includes the producer’s name, phone number, and address in Block 2. Missing contact info is a major red flag.
Coverage limits that seem too low.
Professional roofing contractors typically carry $1 million in general liability coverage minimum. Anyone offering significantly less might not be properly insured.
Expired or soon-to-expire dates.
Check the policy dates carefully. An expired certificate means no coverage. A policy expiring next week means potential coverage gaps.
Protect Yourself Before Problems Happen
Don’t wait until someone gets hurt to discover your contractor’s insurance won’t cover it.
Verify coverage before work starts:
- Request a Certificate of Insurance from the contractor’s agent
- Call the producer to confirm active coverage
- Check for exclusions that affect your project
- Request Additional Insured status
- Keep all documentation in a safe place
If a contractor can’t or won’t provide this information, find someone else.
Long Island’s (Fully Insured and Trusted) Roofing Contractor
Licensing doesn’t protect you from insurance scams.
Ghost policies, coverage exclusions, and trade-specific limitations leave property owners exposed to massive liability—even when the contractor appears properly licensed.
County Roofing Systems carries comprehensive, trade-specific insurance designed for roofing work. Our general liability and workers’ comp policies cover every aspect of residential and commercial roofing with no hidden exclusions.
We provide full documentation, add you as Additional Insured, and encourage you to verify our coverage independently.
That’s how a professional roofing contractor operates.
Protect your investment. Call County Roofing at (631) 400-7663 for a free estimate—and work with a contractor whose insurance actually protects you.
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