Workers compensation insurance provides wage replacement and medical benefits to employees who are injured on the job. For roofing contractors, this coverage is critical because roofing consistently ranks among the most dangerous occupations in the United States. Falls from height, heat-related illness, burns from torch-applied systems, and repetitive motion injuries are all common claims in the roofing industry.
In most states, workers compensation is mandatory if you have even one employee. Texas is an exception as a non-compulsory state, but opting out exposes you to direct lawsuits from injured workers without the protections of the workers comp system. Even in Texas, most general contractors require subcontractors to carry workers comp before allowing them on a jobsite.
Your workers comp premium is calculated based on your payroll and your NCCI class code. Roofing contractors are typically classified under code 5551 (roofing) or 5552 (roofing with sheet metal), which carry some of the highest base rates in construction. Your experience modification rate (EMR) then adjusts that base rate up or down based on your claims history. An EMR above 1.0 means you pay more than the industry average; below 1.0 means you pay less. Keeping your EMR low through safety programs and return-to-work protocols is one of the most effective ways to control insurance costs.