Roofing is one of the most dangerous jobs in the construction world. Roofers often work high above the ground, exposed to sun, wind, rain, and slippery surfaces. With these risks, it’s no surprise that roofing businesses pay more for workers compensation insurance than most other trades. But how much does workers comp actually cost for roofers?
In this article, we’ll break down the real price of workers comp insurance for roofing companies. We’ll look at what affects the rates, what to expect in different states, and how to manage your costs. Whether you’re a small roofing contractor or managing a large team, this guide will help you understand what you’re paying for—and why.
Why Roofers Need Workers Compensation Insurance
Workers compensation insurance is required in most states. It protects both the business and its employees. If a roofer falls or gets hurt on the job, workers comp helps pay for medical bills, lost wages, and even rehab costs. Without it, roofing companies could be stuck paying out of pocket—and facing lawsuits.
For a roofer, this coverage is not just important—it’s essential. Roofing accidents can lead to serious injuries, and the cost of those injuries can be very high. Workers comp makes sure the injured worker is taken care of, and the business doesn’t go under from a single claim.
What Affects the Cost of Workers Comp for Roofers?
The cost of workers compensation insurance is based on many things. Here are the main factors that affect how much a roofing business will pay:
1. Classification Code
Insurance companies use job classification codes to figure out risk. Roofers usually fall under one of the highest-risk codes. The National Council on Compensation Insurance (NCCI) uses code 5551 for roofing work. Because of the high risk, this code comes with a higher rate per $100 of payroll.
For example, while a clerical worker might have a rate of less than $1 per $100 in payroll, roofers can face rates of $20, $30, or even more—depending on the state.
2. Payroll Amount
The more you pay your roofers, the more you pay for workers comp. That’s because premiums are based on payroll. So, a company with a $100,000 annual payroll might pay $20,000 or more in workers comp costs if the rate is $20 per $100.
3. Location
Where your business operates matters a lot. Each state has its own workers comp laws and base rates. For example, roofing workers comp may be more expensive in California than in Texas or Florida. Some states also let you shop for private insurance, while others use state-run funds.
4. Experience Modifier
This is often called an “E-Mod.” It’s a number that adjusts your premium based on your claims history. If your company has a good safety record and few claims, you can get a discount. If you’ve had several injuries or accidents, your rate could go up.
5. Type of Roofing Work
Not all roofing jobs are the same. Residential roofing may be slightly less risky than commercial or industrial roofing, especially if you’re working on flat surfaces or low slopes. Installing solar panels, using heavy equipment, or working on high-rise buildings could all lead to higher rates.
Average Costs Across the U.S.
It’s hard to give a one-size-fits-all number for roofing workers comp insurance because the rates vary widely. But here are some general ranges that roofing companies might expect:
Low-end states (with good safety history): $18–$25 per $100 of payroll
Mid-range states: $30–$45 per $100 of payroll
High-cost states (or poor safety history): $50–$100+ per $100 of payroll
Let’s say you run a small roofing business with $200,000 in total payroll. If your rate is $35 per $100, your annual workers comp premium would be $70,000.
If your business has past claims and an experience modifier of 1.25, that cost could rise to $87,500. On the other hand, if you have an excellent safety record and a modifier of 0.80, it could drop to $56,000.
Why Roofing Insurance Is So Expensive
Roofing is risky. Workers climb ladders, walk on steep pitches, and use power tools. Injuries can happen quickly and can be serious—broken bones, head injuries, even fatalities.
Because the chances of a claim are so high, and the cost of treating those injuries is also high, insurance companies charge more to cover that risk. In fact, roofing has some of the highest workers comp rates of any trade.
Can You Lower the Cost of Workers Comp?
Yes, even in a high-risk trade like roofing, there are ways to reduce your premium. Here’s how:
1. Improve Job Site Safety
Better safety means fewer injuries. Fewer injuries mean fewer claims. And fewer claims mean lower insurance costs. Training workers on ladder safety, using harnesses, and avoiding unsafe weather conditions can help reduce risk.
2. Maintain a Good Claims History
Avoiding claims helps keep your experience modifier low. Every claim can affect your rate for years, so it pays to focus on preventing accidents and handling small issues before they turn into big claims.
3. Work With an Independent Insurance Agent
An agent who specializes in construction or roofing can help you shop around. They can find you the best rates and help you understand the small print. Sometimes, switching carriers or changing how you classify your workers can make a big difference.
4. Use Subcontractors (Carefully)
Some roofing companies lower costs by using subcontractors instead of employees. But this only works if the subcontractors have their own workers comp coverage. If they don’t, your insurance company may still count them as part of your payroll.
Always get certificates of insurance from your subcontractors and keep them on file.
5. Ask About Safety Programs
Some insurers offer discounts if your company has a formal safety program. This might include regular safety meetings, equipment checks, and written safety procedures. Even small steps like wearing proper boots or helmets can make a big impact.
What Happens If You Don’t Have Workers Comp?
Skipping workers comp is not a good idea. In many states, it’s against the law. You could face:
Heavy fines
Lawsuits from injured workers
Jail time in extreme cases
Being shut down by state inspectors
Difficulty winning jobs or contracts
Also, if an employee is hurt and you don’t have coverage, your business could be held responsible for everything—from medical care to legal bills. One bad injury could wipe out years of profits.
Conclusion
Workers comp for roofers is expensive—but it’s also necessary. The cost depends on your state, your payroll, your safety record, and the type of roofing you do. While you can’t eliminate the cost, you can control some of it by keeping your job sites safe and working with the right insurance provider.
Roofing is tough, risky work. Protecting your workers and your business with the right insurance isn’t just smart—it’s the law in most places. Take the time to understand your options, manage your risks, and shop around for the best deal.
Related topic:
Who Pays for My Health Insurance While on Workers’ Compensation?
