Roofing companies are a difficult to quote industry for insurance companies for two main reasons. They are working at heights and there is a driving risk. These two things impact premium for workers’ compensation more than most other risks. Any business that is driving from location to location as a major part of the duties has an elevated amount of workers’ compensation claims. These businesses have a higher quantity of claims and the claims tend to be more severe. Working at heights is also a huge risk from an insurance perspective. This is not so much because of the quantity of claims in this industry, but more because the severity of injuries involved in a fall tend to be severe and cause larger medical costs.
Having safety as a part of your company culture is extremely important in more risk adverse injuries. The safety program should be clear and concise and it should be ingrained in the workforce the day an employee is hired. It can even start before hiring an employee in the way you go about choosing the people you hire. Focusing on safety during the hiring process and then as a regular part of the training your employees receive. Another important part of the workers’ compensation system for businesses in more risk adverse industries is to have an effective return to work program. Studies show that the quicker an employee gets back on the job, even in a limited capacity, the less likely they are to wind up on long term disability. Humans are creatures of habit and the longer people are away from work because of an injury the more likely they are to form habits not a part of their work day routine. Getting the injured worker back on the job and filling like they are contributing to something productive can dramatically boost their spirit. It also creates much better outcomes for your injured employee and your business.
Like many industries roofing has more than one industry classification code. It is important for you as a business owner to spend some time with your insurance agent discussing exactly what you do and do not partake in as a part of your business. Making sure that your business is properly classified can have a dramatic effect on the amount you pay for workers’ compensation insurance.
Below is a list of classification codes commonly used by businesses in the roofing industry.
|Class Codes||Brief Business Description of Roofing Operations for each Class Code|
|5551||Roofing- All Types. This is the standard classification for most roofing contractors. It covers contractors who perform installation and repair of new and existing roofs on residential and commercial properties. Work may include flat, sloped, and built-up roofs and may include the installation or repair of joists, trusses, rafters, decks, sheathing, etc. Materials utilized may include shingles, metals, hot tar, composite materials, concrete aggregates, slate, tile, or paper.|
|8227||Construction Yard. Larger roofing companies who maintain a permanent facility or yard for material storage and maintenance of equipment may often utilize this classification on their policy for employees exclusively dedicated to the facility or yard.|
|5645||Residential Construction. When roofing installation is performed in conjunction with the construction of a residential dwelling by employees of the same general contractor then roofing may be applicable to this code. Applies only to residential construction under 3 stories.|
|NOTES||Roofing programs require minimum payroll requirements and years in business depending on the state and the carriers’ programs.|