Workers Comp Insurance for Roofers in Texas: Requirements and Average Costs

Texas is the only state in the country where private employers can legally opt out of workers compensation insurance. For roofing contractors, that distinction matters less than you might think. Most general contractors and commercial property owners will not let you on a job site without a current workers comp certificate. And if someone falls off a roof while working for you and you have no coverage, you are personally on the hook for every medical bill.

Quick Answer

Estimated workers comp premiums for Texas roofing contractors:

Business Size	Annual Premium Range
Solo owner (with employees)	$6,000 to $14,000 per year
2 to 5 employees	$14,000 to $32,000 per year
5 to 15 employees	$32,000 to $80,000 per year

Roofing is one of the highest-risk workers comp classifications in Texas. Class code 5551 (Roofing, all kinds) carries base rates that reflect the frequency and severity of fall injuries in the industry.

Is Workers Comp Required in Texas for Roofers?

Texas does not mandate workers comp for most private employers. The Texas Department of Insurance (TDI), Division of Workers' Compensation, covers employers who choose to participate. Employers who opt out are called non-subscribers.

Here is the problem with non-subscriber status for roofing companies:

Contract requirements. The majority of commercial construction contracts, general contractor subcontractor agreements, and property management agreements require proof of workers comp. If you cannot provide a certificate, you do not get the work.

Non-subscriber liability. A non-subscriber who injures a worker loses standard common-law defenses. The injured worker can sue in civil court and does not have to prove employer negligence. Jury awards in Texas construction injury cases can run into the millions.

Government work. Any contractor working on a public project in Texas is required to carry workers comp under Texas Labor Code Chapter 406.

Most roofing contractors in Texas carry workers comp not because the state requires it, but because their customers do.

What Workers Comp Covers

Medical treatment. All reasonable and necessary medical care for a work-related injury, with no dollar limit. Texas workers comp uses a network of approved treating doctors. Injured workers generally must treat within the network.

Income benefits. Temporary income benefits (TIBs) replace approximately 70% of the pre-injury average weekly wage during recovery. Impairment income benefits (IIBs) apply once maximum medical improvement is reached. Supplemental income benefits (SIBs) may follow if there is permanent impairment.

Burial and death benefits. If a worker dies from a work-related injury, survivors receive burial expenses plus ongoing death benefits based on the worker's wages.

Dispute resolution. Disputed claims go through the Texas Division of Workers' Compensation administrative process, not civil court. This is generally faster and less expensive than litigation.

Common Roofing Injuries in Texas

• Falls from rooftops, ladders, and scaffolding (the leading cause of roofing fatalities nationally)
• Heat exhaustion and heat stroke, particularly in Texas summers where temperatures on a roof surface can exceed 150 degrees
• Nail gun and power tool injuries
• Eye injuries from debris, tar, and chemical exposure
• Cuts and lacerations from sheet metal, flashing, and shingles
• Back and knee injuries from carrying materials and working in cramped positions
• Electrical contact from proximity to power lines

Texas has no mandatory OSHA state plan. Federal OSHA covers most Texas employers. OSHA 1926 Subpart R governs steel erection and fall protection standards that apply to most commercial roofing work.

How Workers Comp Premiums Are Calculated

Payroll. Premium is calculated as a rate per $100 of payroll. For roofing class code 5551, Texas base rates typically run $15 to $25 per $100 of payroll, though they vary by carrier and claims history.

Experience modifier. After three years of premium history, the NCCI calculates an experience modifier (ex-mod) comparing your actual claims costs to expected costs for a roofing company your size. A clean record produces a modifier below 1.00, reducing premiums. A serious fall injury can push your modifier above 1.50 for several years.

Classification. Payroll for office staff, estimators, and other non-roofing employees is classified at lower rates. Misclassifying field workers as office staff is a common audit finding and results in back premiums plus penalties.

Subcontractors. If you hire uninsured subcontractors, your carrier may treat their payroll as your own for premium purposes. Always get certificates of insurance from every subcontractor before work begins.

Getting a Certificate of Insurance

General contractors and commercial clients will ask for a certificate (ACORD 25) showing:

• Policy number and carrier name
• Policy effective and expiration dates
• Coverage limits
• Additional insured endorsement if required

Keep your certificate current. A lapsed policy that generates an updated certificate request mid-project is a red flag for clients and may result in removal from the job.

Frequently Asked Questions

Can a roofing company owner opt out of workers comp in Texas?

Yes. Texas does not require private employers to carry workers comp. But most commercial work requires it by contract, and non-subscriber employers lose common-law defenses in civil suits. In practice, most roofing companies carrying commercial work need coverage.

What is class code 5551 and why does it affect my rate?

NCCI class code 5551 applies to all types of roofing work. It is one of the highest-rate classifications in the construction industry because fall injuries are frequent and serious. Your entire field payroll is typically classified under 5551. Office staff and estimators fall under lower-rate codes.

Does workers comp cover subcontractors I hire?

Not automatically. If a subcontractor carries their own workers comp, their injuries are covered by their own policy. If they are uninsured, your carrier may treat their payroll as your own when calculating premiums, and an injured uninsured subcontractor may be able to claim benefits under your policy. Require certificates from every sub before they step on a roof.

How do I lower my workers comp premium?

The most effective ways: maintain a clean claims record over three or more years to drive down your experience modifier, implement a written safety program (OSHA 10 or 30 training, fall protection plans), classify your payroll correctly, and audit your payroll with your carrier at renewal. Some carriers offer credits for documented safety programs.

What happens if an employee is hurt and I have no coverage?

As a non-subscriber, you lose the right to assert contributory negligence as a defense. The injured worker can sue you in civil court. Jury awards in Texas construction injury cases are not capped in the same way workers comp benefits are. You are personally liable for medical costs, lost wages, and potentially pain and suffering.

Disclaimer

This article is for informational purposes only and does not constitute insurance or legal advice. Requirements and costs vary by carrier, business size, and individual circumstances. Consult a licensed insurance agent for guidance specific to your situation.

Sources

• Texas Department of Insurance, Division of Workers' Compensation
• NCCI Class Code Lookup
• OSHA Construction Industry Standards (29 CFR 1926)
• Texas Labor Code Chapter 406