How Much Is Workers' Comp for Roofers? Understanding the Rates
- Jun 29
- 5 min read
Running a roofing business is already tough—tight deadlines, safety risks, and clients asking for a certificate before work starts. On top of that, you’re trying to figure out: how much is workers’ comp going to cost me?
In this guide, we’ll break down how much workers' comp is for roofers and how rates work, so you can understand what you’re paying for—and what you can control.
How Much Is Workers’ Comp for Roofers? (Quick Answer)
Workers’ compensation for roofers is typically calculated per $100 of payroll, and rates vary widely based on your state, your employees’ job duties, and your claims history.
Roofing is considered a high-risk trade, so premiums are generally higher than office-based or low-risk industries. Your exact cost depends on:
Total payroll
Roofing class codes
Experience mod (EMR)
State-specific rules and rates
Because every business is different, the best way to get an accurate number is to get a personalized quote from a licensed agent.
Why Roofing Workers’ Comp Rates Are Higher
Roofing consistently ranks as one of the highest-risk industries in workers’ compensation.
Common risks include:
Falls from roofs and ladders
Heat exposure and dehydration
Injuries from tools and equipment
Lifting heavy materials
Since workers’ comp pricing is based on risk, roofing businesses typically face higher rates than many other trades.
How Workers’ Comp Rates for Roofers Are Calculated
Understanding how your premium works makes it easier to control costs.
Payroll-Based Premium
Workers’ comp is calculated using your payroll.
Here’s how it works:
Your payroll is divided into units of $100
Each unit is multiplied by a rate based on your job risk
Example:
$150,000 payroll = 1,500 units
Each unit is multiplied by a roofing rate determined by your classification
More employees and higher payroll generally mean a higher premium.
Roofing Class Codes
Class codes are four-digit numbers that describe the type of work your employees perform.
For roofing businesses:
Roof installers = high-risk class codes
Office/admin staff = lower-risk class codes
Separating these roles correctly can have a big impact on your premium.
If everyone is lumped into the roofing class code, you may end up overpaying.
Experience Mod (EMR)
Your experience mod, or EMR, is a number that compares your claims history to similar roofing companies.
1.00 = average
Above 1.00 = more claims, higher premium
Below 1.00 = fewer claims, lower premium
Your EMR is one of the most important factors affecting your long-term cost. Fewer claims can help bring it down over time.
State-Specific Workers’ Comp Rates
Workers’ comp laws and rates are set at the state level, which means pricing varies depending on where you operate.
For example:
Some states require coverage for even one employee
Others have thresholds based on employee count
Texas allows some businesses to opt out of traditional workers’ comp
Because rules vary and may change, it’s important to verify details with a licensed agent or review general guidance from the U.S. Department of Labor at https://www.dol.gov/agencies/owcp/workers-compensation.
Other Factors That Affect Roofing Workers’ Comp Rates
Beyond payroll and classification, several other factors influence your cost.
Claims History
If your business has had multiple or severe claims, your premium will likely increase.
Even one large claim can impact your EMR for several years.
Safety Practices
Businesses with strong safety programs tend to have fewer claims and better long-term rates.
Key safety efforts include:
Fall protection systems
Safety training for new hires
Regular jobsite inspections
The Occupational Safety and Health Administration offers roofing safety resources at
Employee vs. 1099 Classification
Worker classification is a common issue in roofing.
Employees are usually required to be covered under workers’ comp
Independent contractors (1099) may not need to be covered
However, misclassifying workers can lead to:
Audit penalties
Back premiums
Legal risks
Each state defines classification differently, so it’s important to follow local guidelines.
Workers’ Comp Audits for Roofers
Every policy ends with a workers’ comp audit.
An audit reviews your actual business activity to confirm:
Payroll totals
Employee classifications
Use of subcontractors
If your payroll was higher than estimated, you may owe more premium. If it was lower, you may receive a credit.
Roofing contractors often run into audit issues due to:
Cash labor or missing records
Incorrect 1099 classifications
Poor documentation
Keeping accurate records year-round can help avoid surprises.
What Is a Ghost Policy for Roofers?
A ghost policy is a workers’ comp policy with no payroll.
Roofers sometimes use ghost policies to:
Meet general contractor requirements
Provide proof of insurance
Bid on jobs
It’s important to understand that ghost policies do not cover employees. If you hire workers later, you’ll need to update your coverage.
Pay-As-You-Go Workers’ Comp for Roofing Businesses
A pay-as-you-go workers’ comp policy allows you to pay premiums based on actual payroll instead of estimates.
Benefits include:
Improved cash flow
More accurate billing
Reduced audit surprises
This option works well for roofing companies with changing crew sizes.
How to Lower Workers’ Comp Rates for Roofers
Even though roofing is high risk, there are ways to reduce your premium over time.
Focus on Safety
Fewer injuries usually lead to lower costs.
You can improve safety by:
Using fall protection equipment
Holding regular safety meetings
Training workers on best practices
Separate Class Codes Properly
Make sure office staff are not classified the same as roofers.
Clear classification can prevent overpaying.
Manage Claims Quickly
How you handle claims matters.
Best practices:
Report injuries immediately
Keep communication open with your team
Offer return-to-work options when possible
These steps can help reduce the impact on your EMR.
Keep Payroll Accurate
Underestimating payroll can lead to large audit bills. Overestimating can mean paying too much upfront.
Accurate reporting helps keep your premium balanced.
Work With a Workers’ Comp Specialist
Roofing has unique risks and classification challenges.
An experienced agent can:
Review your current setup
Identify cost-saving opportunities
Help you stay compliant
This can make a meaningful difference in your long-term costs.
Common Mistakes That Increase Roofing Workers’ Comp Rates
Avoiding these mistakes can help control your premium:
Misclassifying employees as 1099 contractors
Failing to track payroll accurately
Not separating office and field roles
Ignoring safety programs
Being unprepared for audits
Fixing just one of these issues may reduce your costs.
FAQ: Workers’ Comp for Roofers
Is workers’ comp required for roofing contractors?
In most states, yes—especially if you have employees. Requirements vary, so always confirm with your state or a licensed agent.
Why are workers’ comp rates so high for roofers?
Roofing is considered high risk due to falls and jobsite hazards, which leads to higher premiums.
Can I lower my roofing workers’ comp costs?
Yes, by improving safety, managing claims, using correct class codes, and maintaining a good EMR.
Do I need workers’ comp for subcontractors?
It depends on how they are classified. Misclassification can lead to penalties, so it’s best to verify with an expert.
What happens if I don’t carry workers’ comp?
You may face fines, lawsuits, or lose job opportunities, as many clients require proof of coverage.
Get Help With Roofing Workers’ Comp Rates
Workers’ comp for roofers doesn’t have to be confusing or out of control. Once you understand how rates work, you can start making smarter decisions for your business.
If you want help reviewing your current policy or getting a competitive quote, Total Work Comp is here to help.
Request a free workers’ compensation quote today and see what options may be available for your roofing business.