Workers’ Compensation Insurance for Roofers, Contractors, and High-Risk Businesses

​Roofers, contractors, and other high-risk class codes undergo a lot of scrutiny when it comes to securing a workers’ compensation policy in the State of Florida.  The process to secure and bind coverage will also take more time.  The precursor to getting coverage for these businesses is prior coverage.  Three (3) years prior coverage with favorable loss runs (low to no claims) is what it will take for a carrier to consider coverage.  This seems like double talk – how can you get a workers’ comp policy if you’ve never had it?  If your business does not have three years prior coverage, you will need to seek coverage through the FWCJUA (Florida Workers’ Comp Joint Underwriting Association), employee leasing organization, or a PEO.  

If your business has not had three years prior coverage, contact our office (321-735-0381) to discuss the best recommendation. If your business has had 3 years prior coverage, we can submit an application.  

Workers’ compensation insurance cost is directly related to the type of work your employees do and how much you pay them to do it.  The questions we ask you will help classify your workers and accurately calculate the rate of insurance.  Workers’ comp insurance is auditable – that means that the insurance carriers will review actuals numbers for payroll compared to the estimated payments made through the policy year.

Here’s a list of most of the data we need to consider an application:

• How many owners?
  • Are they all active?
  • Do they only do clerical work, or will they climb a ladder?
• Are there any clerical employees or employees that do not work in the prevailing class code?
  • How much annual payroll?
• How many part time employees?
  • How much annual payroll?
• How many full time employees?
  • How much annual payroll?
• Do you subcontract any work?
  • What do you subcontract?
  • How much do you pay for subcontracted labor?
  • Do you require the subcontractors to carry workers’ comp coverage and provide a certificate of insurance?
• What are the gross annual sales of the business?
• There will be a supplemental application for most trades so more specific information will also be required.
• Do you have clients or general contractors you work for that have specific requirements for certificates of insurance?  Many general contractors or home builders will require waiver of subrogation – it’s best to provide the actual wording as required in your contracts.
• We will need loss runs from the insured’s prior carrier(s) to prove their claims history.  We’ll tell you how to get what is needed.​

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Once we submit applications for coverage the carriers will review the information we provide, and ask any questions they may have on the data we provide.  Roofers, tower climbers, and other higher risk classes will have an extra step – the carrier will schedule an inspection.  During the inspection process will be the demonstration of their personal protective equipment, fall control, and overall safety.  They will visit a roofer at a jobsite, tower climbers will be met at a tower, etc.  Once all checks out, we will be given a formal quote and approval to bind coverage. 

Any billing plans available from the carrier will be presented.
If you work with a payroll company, our office will work with them to coordinate the process.  Binding coverage will require signing the applications – wet signatures are accepted but not digital signatures.  Once coverage is bound it will take up to a month to receive the actual policy.  Once we have the policy in hand we will be able to offer certificates of insurance as required by your GC’s and the local municipalities where they perform your work.   
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Prior to renewal, we reach out to our clients to review your data to be certain that your renewal is rated to accommodate any business growth or slow down.  It’s part of making sure that there are no surprises when it comes time for your audit.  We can help answer any audit related questions each year.  The goal is to be certain that there are no big surprises or extra money owed while covering the risk.

In closing, it’s easy to see that workers’ compensation insurance can be frustrating for a business owner.  At Natwick Insurance we take time to ask tough questions so we can best understand your business.  We strive to know your business as well as you do so we get you the best coverage for the best price to reduce your risk.

Written By: Donnie Torok - Insurance Agent at Natwick Insurance, Inc. 321-735-0381

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