Insurance pressure is rising — Contractors who adapt will survive it

RCS Influencer John Kenney says that the contractors who treat risk management as part of their daily operation are going to be the ones who stay competitive.

If you’ve been in this business long enough, you’ve seen insurance cycles come and go. What we’re dealing with right now isn’t just another cycle — it’s a tightening market that’s forcing contractors to rethink how they operate. Premiums are climbing, deductibles are increasing and in some cases, carriers are pulling out altogether or becoming far more selective about who they insure. 

For roofing contractors, this isn’t a background issue anymore. It’s hitting the bottom line directly, and for some companies, it’s becoming one of their highest fixed costs. 

I’ve had more conversations in the last year about insurance than I have in the previous ten. Contractors are getting renewal notices with double-digit increases, sometimes higher and the immediate reaction is frustration. But once you get past that, the real question becomes: what can you actually control? 

Because while you can’t control the market, you can control how your company is positioned inside of it. 

One of the biggest shifts we’re seeing is that carriers are no longer just insuring roofing contractors — they’re underwriting risk profiles. That means they’re looking deeper at how your business operates. Safety programs, claims history, documentation, training practices and even how you manage your crews all play a role in how you’re viewed. 

Contractors who still treat safety as a compliance exercise are feeling that pressure the most. If your safety program exists only on paper, insurance carriers will see through that quickly. On the other hand, companies that have built a true culture of safety — where crews understand expectations, leadership enforces standards and incidents are tracked and reviewed — are in a much stronger position. That doesn’t eliminate increases, but it can absolutely influence how severe they are and whether you remain an attractive risk. 

Another area that’s becoming more important is documentation. I’m not talking about paperwork for the sake of paperwork. I’m talking about clear, consistent records that show how your company operates. Jobsite safety logs, training records, incident reports and internal reviews all tell a story. When a carrier or broker reviews your business, those records help demonstrate that you’re managing risk proactively rather than reacting after something goes wrong. 

There’s also a growing need for contractors to take a hard look at their scope of work. Some types of projects carry higher risk, and in today’s market, that risk is being priced accordingly. That doesn’t mean you need to walk away from certain work entirely, but you do need to understand how it impacts your overall insurance profile. Smart contractors are evaluating job types, contract structures and even geographic exposure as part of their business planning. 

On the cost side, one of the most effective strategies is still the simplest: reduce claims. Easier said than done, but it starts with consistency: consistent training, consistent supervision and consistent accountability in the field. When crews know what’s expected and leadership reinforces it every day, incidents tend to decrease. Fewer incidents lead to a better claims history, and over time, that’s one of the strongest levers you have in controlling insurance costs. 

I also advise contractors to build stronger relationships with their brokers. Too often, the broker relationship is transactional — renewal comes around, numbers get presented and that’s the end of the conversation. In this market, that approach doesn’t work anymore. You need a broker who understands your business, communicates effectively with carriers and helps position your company in the best possible light. That relationship should be active throughout the year, not just at renewal time. 

What’s happening in the insurance market is forcing a level of discipline that, frankly, the industry has needed for a while. The companies that are organized, understand their risk and run structured operations are the ones navigating this environment best. Those who rely on informal processes and inconsistent practices are feeling the pressure the most. 

This isn’t just about insurance — it’s about how your business is built. The contractors who treat risk management as part of their daily operation, not just an annual expense, are going to be the ones who stay competitive as the market continues to tighten. 

The reality is, insurance costs aren’t likely to drop anytime soon. But contractors who adapt, tighten their operations and take control of what they can will be in a far better position to manage the impact — and that’s what separates companies that struggle from the ones that continue to grow.