The National Roofing Contractors Association (NRCA) traditionally doesn't draw that well on the West Coast, but its 117th
annual convention and exhibit remains the largest in the roofing industry. Attendance did not appear to be record setting
(around 6,000), and the tone of the show was serious-largely due to insurance concerns and a slow-to-grow nonresidential roofing
market.
NRCA's officers remain upbeat, however, with conventions in Orlando (2005) and Las Vegas (2006) likely to attract bigger crowds.
The San Diego show still offered roofing contractor attendees a decent return on their investment. In case you missed it,
here's a round-up of the programs, events and seminars held during this year's convention.
The insurance crisis A trio of experts offered a glimpse of what roofing contractors can expect from insurance policies this year during NRCA's
management program-and they didn't paint a pretty picture.
"Twenty years ago it was how to reduce burns and falls. Fifteen years ago asbestos became the hottest topic," said Jamie McAdam,
president of the roofing company F.J. Dahill Inc. "Now we have mold, construction defects ... We have pretty much everything
but locusts at this point, and that could be coming."
Litigation over mold, construction defects, water damage and fire damage have driven many insurance companies out of the roofing
industry and caused others to make tough changes in their policies. Among the insurance changes the speakers predicted the
industry would see in 2004:
- If torches are used for more than 25% of your volume, you may not be able to get general liability or umbrella insurance.
According to McAdam, NRCA is developing a program for torching certification.
- Definition of residential work will expand, thus expanding the types of roofing jobs that many policies will exclude. Residential
work will likely be defined as anywhere people live/sleep for an extended period of time-which includes places like assisted
care facilities and military barracks, but not hospitals or hotels.
- Some insurance companies may limit coverage of residential work to 12 months after the construction is completed, while others
may exclude it completely.
- Mold, fungi, algae, subcontractor work and hot tar exclusions will also become more common.
Rob Foote, executive vice president of insurance agency Frank H. Furman Inc., Pompano Beach, FL, offered the following tips
to give an underwriter a reason to accept your company:
- Invite the underwriter to your shop to show them what type of company you have.
- Update your company's Web site, which underwriters use to gauge what types of work you do. Use the site to promote quality
and stability.
- Address losses that your company has incurred and what changes your company has made to reduce the chance of a similar recurrence.
Because new hires are the source of 66% of claims, underwriters will pay close attention to how you hire and retain the best
staff, including your employees' wages and your company's turnover ratio.
Foote also stressed the importance of strict controls for subcontractors, similar to what general contractors often have when
hiring roofing contractors. Make sure you have hold harmless and indemnification agreements with your subcontractors and be
named as an additional insured by the subcontractor.
"If a subcontractor is working for you and gets his insurance cancelled, his workers are your workers from an insurance standpoint
and you will have to pay any claims put in by them," Foote said.
McAdam said he expects the industry will see more falsified certificates of insurance from subcontractors, as it becomes more
difficult for them to be insured.
