NCCI class codes are numerical classifications assigned by the National Council on Compensation Insurance to categorize businesses by the type of work their employees perform. Each class code has an associated base rate that reflects the risk level of that work category. For roofing contractors, the primary class codes are 5551 (roofing - all kinds and drivers) and 5552 (roofing - including sheet metal work). These codes carry some of the highest base rates in the construction industry, reflecting the statistically high injury rate in roofing work.
Your class code assignment directly determines your workers compensation base rate, which is then modified by your experience modification rate to produce your actual premium. Getting classified under the correct code is critical. If your roofing employees are incorrectly classified under a lower-rated code, you will face a large additional premium at audit when the auditor reclassifies your payroll. If you have employees who perform non-roofing work such as office administration, you can assign them to their appropriate lower-rated class codes, reducing your overall premium.
Some states use their own classification systems rather than NCCI codes, but the concept is the same. When setting up a workers compensation policy, ensure that every employee is assigned to the class code that matches their actual job duties. Crew members who work on roofs are coded 5551 or 5552. Office staff are typically coded 8810 (clerical). Drivers who do not perform roofing work may be coded separately. Proper classification with documented job descriptions protects you from audit reclassification disputes and ensures you pay the correct premium from the start.