Florida Approves Workers’ Comp Rate Cut: Are Roofers Being Left Behind?

Florida’s workers’ compensation insurance market is experiencing its ninth consecutive year of rate cuts, with a recent approval of a 6.9% average decrease for 2026. While this may seem like welcome news for businesses across the board, concerns are rising within the roofing industry. With the high-risk nature of their work, are these rate cuts truly beneficial for roofing contractors, or are they being left behind?

The Sunshine State’s Workers’ Comp Landscape

Florida’s workers’ compensation system has undergone significant changes since 2003, resulting in an overall rate decrease of approximately 85%. The latest cut, approved by the state’s insurance commissioner, reflects a continued trend of declining worker injury rates and medical costs. According to Commissioner Michael Yaworsky, these rate decreases translate to reduced operating costs, encouraging investment and growth throughout Florida’s economy.

The National Council on Compensation Insurance (NCCI), which recommends rates for 38 states, based its recommendation on data from 2022 and 2023. This data indicates a steady drop in worker injury rates across most job classifications in Florida.

A Roofer’s Perspective: Cause for Concern?

While the overall decrease in workers’ compensation rates paints a positive picture, not everyone is celebrating. Mark Askins, CEO of BrightFund, the workers’ comp program offered by the Florida Roofing and Sheet Metal Contractors Association, voiced concerns at a public hearing. He warned that continued rate cuts have discouraged many insurers from writing workers’ comp for high-risk professions like roofing.

Askins argued that underwriters may not feel they can obtain the necessary premium to cover potential losses over time. This has led to a situation where only a handful of carriers now write high-risk classifications in Florida. He predicted that lower rates could lead these carriers to increase their minimum premium per employer to at least $25,000, a level that could prove costly for small businesses. This could leave professional employer organizations (PEOs) and the assigned risk market as the only viable options for some roofers in Florida.

The High-Risk Reality of Roofing

Roofing is undeniably a dangerous occupation. According to recent data:

Roofing falls account for approximately 40% of all construction fatalities in the United States.
The fatality rate for roofing laborers is roughly 40 deaths per 100,000 workers annually.
Approximately 70% of roofing accidents involve falls from heights.
Unsafe use of ladders contributes to nearly 25% of roofing injuries.

These statistics highlight the inherent risks involved in roofing work, making workers’ compensation coverage crucial for both employers and employees. In Florida, construction businesses, including roofing contractors, are required to carry workers’ comp if they have one or more employees. Failure to do so can result in heavy fines, stop-work orders, and potential personal liability for uncovered claims.

Factors Influencing Workers’ Comp Costs for Roofers

The cost of workers’ compensation for roofers in Florida is influenced by several factors:

Classification Code: Roofing work falls under Class Code 5551, which reflects the high-risk nature of the job and sets the base rate for insurance premiums.
Payroll: Higher payroll amounts lead to higher premiums. Rates are typically calculated per $100 of payroll.
Experience Modification Rating (EMR): This rating reflects a company’s claims history compared to others in the industry. A lower EMR can result in reduced premiums, indicating a safer work environment.
Safety Programs: Implementing drug-free workplace programs and certified safety programs can qualify businesses for discounts.

Given these factors, it’s clear that roofing contractors already face some of the highest workers’ compensation rates in Florida. The question remains: will further rate cuts exacerbate the challenges they face in obtaining affordable coverage?

The Impact of Labor Shortages and Inexperienced Workers

Adding to the concerns surrounding rate cuts is the ongoing labor shortage in the construction industry. As older workers retire and the demand for roofing services remains high, contractors are often forced to hire less experienced workers. This influx of inexperienced labor can lead to an increase in accidents and injuries, potentially driving up workers’ compensation claims and, ironically, leading to higher rates in the future.

The Florida Roofing and Sheet Metal Contractors Association has expressed concerns that the NCCI’s recommended rates may not be considering the true number of injuries in the construction business, particularly with the rise of inexperienced workers.

Navigating the Challenges

For roofing contractors in Florida, navigating the complexities of workers’ compensation insurance requires a proactive approach. Here are some strategies to consider:

Prioritize Safety: Implementing comprehensive safety programs and providing ongoing training to workers can help reduce accidents and lower EMRs.
Accurate Payroll Reporting: Ensuring accurate payroll reporting is crucial for calculating premiums correctly.
Shop Around: Don’t settle for the first quote you receive. Work with an experienced insurance broker to compare rates from multiple carriers and explore all available options.
Consider a PEO: Professional employer organizations (PEOs) can provide access to more competitive workers’ compensation rates and handle many administrative tasks, freeing up contractors to focus on their core business.
Explore Alternative Coverage Options: Investigate options such as self-insurance funds, which may offer more stability and potential dividends.

The Bottom Line

While the overall decrease in workers’ compensation rates in Florida may benefit many businesses, the roofing industry faces unique challenges. The high-risk nature of the work, coupled with labor shortages and the potential for inexperienced workers, raises concerns about the long-term impact of these rate cuts.

Roofing contractors need to be proactive in managing their risks, prioritizing safety, and exploring all available coverage options to ensure they can obtain affordable workers’ compensation insurance and protect their businesses and employees. It is crucial to stay informed about legislative changes, industry trends, and available resources to navigate this complex landscape effectively.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult with a qualified legal or insurance professional for advice tailored to your specific situation.