The 2026 Canadian Roofing Insurance Market: What Every Contractor Needs to Know Right Now
By Doug Dombroski, RIBO Sr. Commercial Lines Specialist, Construction & Surety
Roofing insurance in Canada is cheaper right now than it’s been in years. If you’re a roofing contractor and you haven’t reviewed your general liability program in the last six months, you’re probably overpaying.
The Canadian commercial insurance market has entered a clear soft cycle heading into 2026. That means more capacity, more competition between carriers, and lower premiums, especially for well-run roofing businesses with clean claims history.
But cheaper doesn’t always mean better. And this market won’t last forever. Here’s what’s actually happening, what it means for your business, and how to use this window properly.
What Does “Soft Market” Actually Mean for Roofers?
A soft insurance market happens when insurers compete aggressively for business. They lower prices, loosen underwriting requirements, and offer broader coverage terms to win accounts.
For roofing contractors specifically, here’s what that looks like in 2026:
- Primary $2M GL policies that cost $28,000+ eighteen months ago are now landing closer to $15,000 for qualified contractors. That’s a drop of roughly 47%.
- Excess liability ($3M) has dropped in a similar range, with some programs cutting from $15,000 to $7,500.
- New program entrants have launched portal-based products focused entirely on price, writing roofing accounts fast with minimal vetting.
Industry-wide, the trend is the same. According to data from Applied Systems’ Commercial Index, average renewal rate increases across Canadian commercial lines fell to just 2.90% by Q3 2025, about half what they were two years earlier. WTW’s 2026 Insurance Marketplace Realities report noted that nearly every commercial line of insurance, aside from excess casualty, is now in soft-market territory.
For roofers, who have traditionally been one of the hardest classes to insure, this is a meaningful shift.
Why Roofing Insurance Is Historically Expensive
If you’re new to the industry or just curious why your premiums have always been high relative to other trades, here’s the short version.
Roofing consistently ranks as one of the highest-risk construction trades. Carriers price that in. The main drivers:
- Fall hazards. Working at height is the leading cause of injury and fatality in construction. Workers’ compensation rates for roofers reflect this, running 20-50% of payroll in many cases.
- Fire exposure. Torch-applied roofing, hot asphalt kettles, and open-flame work create fire risks that most other trades don’t carry.
- Completed operations claims. Roof leaks can show up months or years after installation. Completed operations coverage is non-negotiable, and carriers know the long tail of roofing claims.
- Property damage. Falling materials, equipment mishaps, and accidental damage to client property are routine exposures.
Lloyd’s of London syndicates remain the primary capacity source for roofing contractors’ liability in Canada. Each syndicate sets its own appetite and pricing, which is why rates can vary significantly depending on which program your broker places you with.
The Opportunity Right Now (and the Risks)
Here’s the good news: if you’re a roofing contractor with a clean claims record, solid safety practices, and membership in good standing with an industry association like the Canadian Roofing Contractors Association (CRCA), Ontario Industrial Roofing Contractors Association (OIRCA), or a provincial affiliate, 2026 is a strong time to shop your program.
You can likely achieve one or more of the following:
- Lower premiums on your existing coverage limits
- Higher limits (moving from $2M to $5M) at a cost that would have been unthinkable two years ago
- Broader coverage terms, including better completed operations language
- Bundled savings by packaging GL, commercial auto, equipment, and excess liability together
But here’s where it gets tricky.
Some of the new entrants in the roofing space are competing almost entirely on price. They write accounts through portals with minimal vetting. No safety review. No claims history analysis. No real underwriting.
That approach builds a book fast. It also builds a claims problem. When underwriters write anyone who fills out a form, they end up insuring the contractors that experienced programs have deliberately screened out. The claims will come, and when they do, those programs either raise rates dramatically or exit the market entirely.
We saw this exact cycle play out in the late 1990s and early 2000s, when fires from torch-applied roofing systems were a regular occurrence across Canada. Hundreds of unqualified “roofers” flooded the market after the 1998 ice storm, and the insurance fallout took years to sort out.
How to Use the Soft Market Without Getting Burned
You have options. Here are three approaches depending on your situation:
Option 1: Shop your program aggressively.
If you haven’t moved your account in 2+ years, get quotes. The spread between your current premium and what’s available in the market may surprise you. A broker who specializes in construction and roofing will have access to multiple Lloyd’s syndicates and domestic carriers, and can present your risk properly to get the best available rate.
This is the right move for most contractors right now.
Option 2: Keep your current carrier, but negotiate harder.
If you have a strong relationship with your current insurer and a clean claims record, use the market as leverage. Ask for a rate reduction, broader terms, or increased limits at the same premium. Carriers that value retention will often meet the market to keep clean accounts.
This works best when your broker knows your loss history cold and can present it with confidence.
Option 3: Increase your limits while rates are low.
Most Canadian roofing contractors carry $2M in general liability coverage. Many commercial contracts now require $5M. In a soft market, the incremental cost of moving from $2M to $5M is lower than it’s been in years. If you’re bidding on commercial projects, this is the time to get the limits you need without the premium shock.
What to Watch for When Switching Programs
Price matters. But it’s not the only thing that matters.
When comparing roofing insurance programs, ask these questions:
- Does the policy include completed operations coverage? This is the coverage that responds when a roof you installed two years ago starts leaking. Some cheap programs exclude it or sublimit it.
- What’s the insurer’s claims-paying record? A policy is only as good as the carrier standing behind it. Check the insurer’s financial rating (A-rated or better from AM Best is the standard).
- Is faulty workmanship covered? Not all policies respond to claims arising from poor installation. The better programs include this; the cheap ones often don’t.
- How does the program handle additional insured requests? GCs and property owners will ask to be added as additional insureds. Some portal-based programs make this process painful or slow. That can cost you jobs.
- What’s the broker’s industry knowledge? A broker who understands roofing, including torch-on vs. cold-applied, residential shingle vs. commercial flat roof, knows how to present your risk to underwriters in a way that gets you the best terms. A generalist broker sending your application into a portal won’t do this.
The Claims History Advantage
If you’ve operated for several years without significant claims, you hold a strong card in this market. Underwriters want clean roofing books. They know the difference between a contractor who trains crews, follows safety protocols, and documents everything, and one who cuts corners.
Here’s what strengthens your position:
- No claims or minimal claims over the past 3-5 years. This is the single biggest factor in getting preferred pricing.
- Active membership in CRCA, OIRCA, or a provincial roofing association. Association membership signals professionalism and commitment to industry standards.
- Documented safety programs. Fall protection protocols, hot work permits, equipment maintenance logs. Carriers review this.
- Proper subcontractor management. If you use subs, requiring them to carry their own insurance and naming you as additional insured prevents their claims from hitting your record.
The Market Will Harden Again
Soft markets don’t last indefinitely. Insurance is cyclical. When claim frequency catches up to the aggressive pricing in the market right now, rates will tighten again. Programs that wrote underpriced business will either correct or withdraw.
Contractors who lock in competitive rates now, with strong carriers and proper coverage, will be better positioned when the cycle turns.
The worst thing you can do is wait.
Next Steps
If you’re a roofing contractor operating anywhere in Canada (outside Quebec), here’s what I’d recommend:
- Get a market review of your current program. Even if you’re happy with your carrier, you should know what’s available. Request a roofing insurance review here.
- Talk to someone who knows roofing. Not a generalist. Not a portal. Someone who understands the difference between a $15,000 shingle job and a $500,000 commercial membrane installation, and can place your risk accordingly.
- Don’t wait until renewal. In a competitive market, brokers and underwriters have more time and flexibility to work your account mid-term. Waiting until the last minute means you get what’s left.
I’ve been placing roofing contractors’ liability for years, and this is the best buyer’s market I’ve seen in a long time. But the window has an expiration date.
If you want to talk through your specific situation, book a call with me directly.
Doug Dombroski is a RIBO-licensed Sr. Commercial Lines Specialist and VP of Roofing at Ai Insurance Organization. He spent years running a roofing company before moving to the insurance side, and brings firsthand knowledge of what it costs to run crews, bid jobs, and handle callbacks. He specializes in general liability, construction insurance, and surety bonding for roofing contractors across Canada.
