California License #4472487 | NPN License #21655529

Yes. Under California Labor Code §3700, all roofing contractors (C-39 license holders) must carry workers’ compensation insurance — even if they have no employees.

This unique rule from the Contractors State License Board (CSLB) exists because roofing is among the highest-risk trades in construction. A roofer cannot legally maintain an active C-39 license without showing proof of coverage.

Coverage protects against on-the-job injuries such as falls, heat exhaustion, or equipment accidents, and shields the business from catastrophic liability.

Roofing work consistently ranks as one of California’s most hazardous occupations, with high rates of falls, head injuries, and heat exposure.

Because even self-employed roofers face extreme risk and may subcontract work, the CSLB mandates coverage regardless of payroll.

This ensures every licensed roofer — solo or with employees — has 24/7 medical and wage protection if injured on the job, while protecting clients and general contractors from shared liability.

California roofing contractors are typically assigned WCIRB Class Code 5552 — Roofing: All Kinds & Drivers.

This code applies to all commercial and residential roofing operations, including:

• Installation and repair of shingles, tile, and metal roofing
  
  
• Flat roof and hot tar work
  
  

Roof coatings and waterproof membranes

Because of the trade’s risk exposure, 5552 carries one of the highest base rates in construction. Correct classification prevents audit disputes and ensures accurate pricing.

The most frequent and costly claims in the roofing trade include:

• Falls from roofs, ladders, or scaffolds
  
  
• Heat exhaustion and dehydration
  
  
• Lacerations and punctures from roofing nails and tools
  
  
• Burns from torching or hot asphalt
  
  

Musculoskeletal injuries from lifting heavy materials

Workers’ comp covers all occupational injuries — from immediate trauma to cumulative stress — and provides medical, wage, and disability benefits without requiring proof of fault.

Premiums are determined using three main variables:

1. Classification Code (5552) — defines the risk category and base rate per $100 of payroll.
   
   
2. Total Payroll — includes wages, overtime, and subcontracted labor (if not separately insured).
   
   

Experience Modification Factor (X-Mod) — a WCIRB-issued score reflecting your loss history compared to other roofers.

Additional pricing adjustments may apply for safety programs, claim frequency, and company size.

Because roofing carries high risk, maintaining a strong safety record is critical to controlling long-term costs.

The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) establishes the classification system, sets base rates, and calculates X-Mods for every insured employer.

For roofers, the WCIRB ensures risk-based pricing fairness across thousands of contractors statewide.

Accurate WCIRB data ensures you aren’t overcharged and helps prevent audit adjustments or misclassification, which are common in roofing due to overlapping construction trades.

Yes. All apprentices, journeymen, and day laborers are considered employees under California law, even if they are hired temporarily or paid per project.

This coverage extends to injuries sustained on-site, during setup, and while transporting materials.

Employers must report accurate payroll for all workers — including 1099 laborers who may be deemed employees under AB5 and the ABC Test — to avoid misclassification penalties.

Operating without valid coverage is both a criminal offense and a CSLB violation.

Penalties include:

• Cease-and-desist orders halting operations
  
  
• Fines up to $100,000
  
  
• C-39 license suspension or revocation
  
  
• Personal liability for all injury costs
  
  If a roofer’s uninsured worker is injured, the Uninsured Employers Benefits Trust Fund (UEBTF) pays the claim and then pursues reimbursement from the roofer — often resulting in financial insolvency.
  
  

Yes, but only if your policy includes “Other States Coverage” (Part Three).

Roofing contractors who accept projects in Nevada, Arizona, or Oregon must disclose all multi-state operations to their insurer in advance.

Failing to declare out-of-state work can lead to claim denial and non-compliance penalties.

Multi-state coverage ensures uninterrupted protection and satisfies reciprocity agreements between state insurance regulators.

Despite high base rates, roofing contractors can lower premiums through strategic safety and administrative management:

• Comprehensive fall-protection training and equipment audits
  
  
• Heat-illness prevention programs (Cal/OSHA compliant)
  
  
• Accurate subcontractor certificates to avoid double-charging
  
  
• Return-to-work policies for modified duty
  
  

Quarterly claim reviews to close reserves and correct errors

A proactive approach builds a favorable X-Mod and strengthens carrier relationships — lowering costs year after year.

The X-Mod is a performance-based multiplier assigned by the WCIRB that compares your claim history to other roofing businesses.

• 1.00 = Average Risk
  
  
• <1.00 = Better than Average (discounted premiums)
  
  

>1.00 = Worse than Average (surcharged premiums)

Because roofing claims tend to be severe, keeping the X-Mod low through safety training and rapid injury reporting can yield major cost savings and improve bid competitiveness.

Roofing contractors should partner with a specialized construction insurance broker familiar with C-39 compliance and high-risk underwriting.

Key selection factors include:

• Access to roofing-specific markets (BTIS, State Fund, ICW, or Markel)
  
  
• Pay-as-you-go billing for payroll-based premium adjustments
  
  
• Risk-management and loss-control consulting
  
  

Automated certificate generation for general contractor compliance

A seasoned broker ensures accurate WCIRB coding, faster claims handling, and consistent coverage that meets both CSLB and Cal/OSHA requirements.