Workers' compensation for California roofers

Workers' compensation

Workers' comp pays medical bills and lost wages when an employee is hurt on the job, and includes employer's liability coverage. California requires every C-39 roofing contractor to carry a workers' comp policy and keep it on file with CSLB, even with no employees. If the policy cancels and isn't replaced, CSLB suspends the license.

Class codes

5552 low wage and 5553 high wage, split by each employee's hourly rate. Low-wage roofing is one of the highest-rated construction classes in California.

Rated on

Payroll per $100, adjusted by your experience modification once you qualify

Audit

Payroll is audited at the end of the policy, and sometimes mid-term

Starting January 1, 2028, workers' comp becomes required for every California contractor license class under SB 216 as amended by SB 1455. Roofers were already covered by the earlier rule, so nothing changes for C-39 contractors.

Low wage vs. high wage: 5552 and 5553

Roofing is a dual-wage class in California. Each employee is assigned by their regular hourly wage: below the threshold they go in 5552, at or above it they go in 5553. The high-wage code carries a much lower rate because the same injury costs less as a share of a higher payroll.

WCIRB has raised the roofing threshold $2 every two years to keep pace with wages. A roofer paid $32 an hour was high wage in 2024 and is low wage on a policy renewing after September 1, 2026, even with no change in pay.

Rate gap

At the September 1, 2026 advisory pure premium rates, 5552 runs about 72% higher than 5553 per $100 of payroll ($20.83 vs. $12.11). Carrier rates are higher than pure premium, but the gap carries through.

Example

One roofer working 2,000 hours: at $32/hr ($64,000) the pure premium is about $13,330. At $33/hr ($66,000) it's about $7,990. A $1 raise costs $2,000 in wages and can save over $5,000 in comp.

What counts toward the threshold. Only the employee's regular hourly rate. Overtime premium, bonuses and per diem don't count, and the test is done per employee, not as a crew average. Anyone your records don't show at or above the threshold is put in 5552 at audit, so clean payroll records are what protect the lower rate.

Owner-only roofing companies

No employees yet? CSLB still requires a workers' comp policy for every C-39 license, so you'll need one even if you're the only person on the roof.

Minimum premium

Carriers charge a minimum premium of about $7,000 to $9,000 a year for owner-only roofing policies.

Payment

Usually paid in full up front. Monthly payments generally aren't available until employee payroll is added to the policy.

Adding employees

Once you hire, premium is based on payroll and the 5552/5553 rates instead of the flat minimum. Estimate it with the comp calculator.

Budget for this before you apply for your license, since CSLB won't issue a C-39 license until the policy is on file. See what roofing insurance costs for the full first-year picture.

Why continuous coverage lowers your rate

A gap in workers' comp costs you more than the months you went without:

• Your license is suspended. CSLB suspends a C-39 license as soon as the policy cancels with no replacement on file.
• You're priced as a new business. Carriers give their best rates to roofers with three or more years of continuous coverage and clean loss runs. A lapse can put you back in the new-venture market.
• Your X-mod can't be built or kept. No reported payroll means no data for WCIRB. A good mod only helps if there's a history behind it.
• Penalties for uninsured work. Working with employees and no coverage can bring a stop order and state penalties.

Set policies to renew automatically, and call us before a non-payment cancellation date rather than after.