A single number on a workers' compensation declarations page tells a contractor more about how their business is priced than any other line item. For a roofing contractor in Florida running NCCI class code 5551, that number commonly lands between $22 and $45 per $100 of payroll. For the same contractor's bookkeeper sitting at a desk in the back office under class code 8810, the rate is roughly $0.25 to $0.50 per $100. The roofer's labor carries a workers compensation premium that is 44 to 180 times higher than the clerical employee sitting fifteen feet away.
That spread is what defines construction workers comp rates by trade in 2026. The National Council on Compensation Insurance (NCCI) publishes loss costs for roughly 600 occupational class codes used in 39 states and the District of Columbia. The remaining states — California, New York, Pennsylvania, New Jersey, Delaware, Michigan, North Carolina, Texas, Wisconsin, Minnesota, and Massachusetts — operate independent rating bureaus or hybrid systems that produce similar but not identical numbers. The pattern is the same everywhere: roofing, ironwork, demolition, and tree trimming sit at the top of the rate sheet, and clerical work sits at the bottom.
The 2026 rate filings are now in force in most NCCI states, and the directional movement matters. Roofing rates rose in 17 states for the policy year. Electrical and HVAC rates dropped in 21 states on the strength of falling claim frequency. The numbers below are the ones contractors should be checking against their own renewals.
The Trade-by-Trade Rate Sheet
NCCI loss costs are published as a dollar figure per $100 of payroll. The carrier then multiplies the loss cost by a Loss Cost Multiplier (LCM) that typically falls between 1.20 and 1.80, adds expense and profit loading, and applies the policyholder's experience modification factor. Quoted rates in the field — what shows up on a declarations page — typically run 40% to 90% higher than the published NCCI loss cost.
The figures below represent typical manual rates (loss cost times a representative 1.45 LCM) before experience mod. Actual rates vary by state, carrier, and account history.
High-hazard trades
- Roofing (NCCI 5551): $22.40 to $45.10 per $100 of payroll. Florida, California, and New York sit at the top of the range. North Dakota's monopolistic state fund prices the same exposure closer to $14.
- Iron and steel erection, structural (NCCI 5040): $14.20 to $28.60. Bridge erection (5057) runs higher, often $18 to $36.
- Excavation and grading (NCCI 6217): $7.40 to $14.80. Trenching deeper than five feet triggers OSHA 29 CFR 1926 Subpart P requirements.
- Concrete construction (NCCI 5213): $9.10 to $17.20.
- Tree trimming, including line clearance (NCCI 0106): $24.80 to $52.40.
Mid-hazard trades
- Carpentry, general (NCCI 5645): $8.20 to $15.40. One- and two-family dwelling carpentry uses the lower-rated 5403, $7.40 to $13.10.
- Plumbing (NCCI 5183): $5.60 to $10.80.
- Drywall installation (NCCI 5445): $7.80 to $14.20.
- Painting, interior (NCCI 5474): $7.20 to $13.40. Exterior (5475) runs $9.40 to $17.80.
- HVAC installation (NCCI 5538): $5.80 to $10.40.
Lower-hazard trades
- Electrical wiring (NCCI 5190): $4.10 to $9.20. Lost-time claim frequency has fallen for fifteen straight years.
- Estimators and supervisors, outside (NCCI 5606): $2.80 to $5.60.
- Drivers (NCCI 7228): $5.80 to $11.20.
- Clerical office (NCCI 8810): $0.22 to $0.54.
A roofer at $33 per $100 versus an office worker at $0.38 per $100 is the 86x multiple that defines the construction premium. For a $2 million roofing payroll, the gross workers' compensation cost before experience mod runs $660,000 a year. The same payroll on a clerical operation would cost roughly $7,600.
How the Experience Mod Compounds the Rate
The experience modification factor (EMR or e-mod) is the single largest lever a contractor controls on workers comp pricing. NCCI calculates it by comparing a policyholder's actual loss experience over the most recent three policy years (excluding the most recent) against the expected losses for a business of the same size and class code mix.
An e-mod of 1.00 means losses are exactly at industry-expected levels. 0.85 means losses are 15% below expected — the contractor pays 15% less than manual rates. 1.25 means losses are 25% above expected — the contractor pays 25% more.
The math on a $2 million roofing payroll at a $33 manual rate:
- 0.85 e-mod: $33 x 0.85 x 20,000 = $561,000
- 1.00 e-mod: $33 x 1.00 x 20,000 = $660,000
- 1.25 e-mod: $33 x 1.25 x 20,000 = $825,000
The spread between a credit and debit mod is $264,000 a year on a single contract. Over a five-year window, a poorly managed loss program costs a roofing contractor more than $1.3 million in additional premium versus a well-managed competitor bidding the same work.
The e-mod also gates project eligibility. Most federal Davis-Bacon work and a growing share of private GC prequalification lists require an EMR below 1.00 to bid. ENR's annual contractor prequalification survey found that 63% of GCs with revenue above $500M now require subcontractor EMR of 1.00 or lower, up from 41% in 2020. An EMR of 1.20 disqualifies a contractor from a large segment of the bid market regardless of their pricing or capability.
For more on how compensation costs interact with other margin pressures, see the labor burden calculator.
State-by-State Rate Variation
Workers comp regulation is a state function, and rates vary widely. A roofer in five different states does the same physical work for radically different premium dollars.
Highest-rate states (typical roofing class rates, 2026 filings):
- California (operates outside NCCI): $45.10 per $100. Driven by high benefit levels and long claim duration.
- New York (NYCIRB): $38.40. Construction Employer Payroll Limitation Law caps payroll for premium purposes.
- Florida (NCCI): $34.80. Hurricane-driven re-roofing volume keeps frequency elevated.
- Illinois (NCCI): $32.10. New Jersey (CRIB): $31.40.
Mid-tier: Texas $24.60 (the only state where comp is optional for private employers), Georgia $22.40, Colorado $20.80.
Lowest-rate states (monopolistic funds): North Dakota $13.80, Ohio $14.20, Wyoming $15.40, Washington $16.80. The four monopolistic state funds produce lower rates than the competitive market, but contractors lose access to deductible credit structures large accounts use to manage premium. Multi-state contractors must carry separate state-fund policies in addition to private-carrier coverage everywhere else.
What Drove the 2026 NCCI Rate Filings
NCCI files annual loss cost updates with each state insurance department. The 2026 filings showed three patterns:
Roofing rates rose in 17 states. NCCI's filing memorandum cited continued fall-from-elevation severity, with median indemnity costs on Class 5551 claims now exceeding $148,000 per lost-time claim. Largest filed increases: Tennessee (+8.4%), South Carolina (+7.6%), Indiana (+6.9%).
Electrical and HVAC dropped in 21 states. Class 5190 frequency fell from 4.8 claims per 100 workers in 2015 to 2.1 in 2024, the lowest of any building trade. Countrywide indicated change for 5190 was -4.2%.
Concrete (5213) held flat to modestly up, with a +1.8% indicated change — frequency stable but severity rising as wage levels grow.
The NCCI 2025 State of the Line reported a private-carrier combined ratio of 88.4% — the eighth consecutive underwriting profit. Frequency is at a multi-decade low. Severity grinds upward 4-6% per year on medical inflation and wage growth. These shifts intersect with broader insurance market pressures detailed in the construction insurance premiums analysis showing a 15% jump for 2026.
How Contractors Actually Lower Their Rates
A contractor cannot change the NCCI loss cost. They can change the experience mod, the premium audit accuracy, and the deductible structure.
Written safety program with documented training. OSHA 29 CFR 1926.20(b) requires programs but not specifically a written document. Every workers comp carrier with a meaningful credit structure does. A written program plus documented toolbox talks and OSHA 10/30 completion typically earns a 5% to 15% schedule credit on top of the e-mod.
Return-to-work program. Modified-duty programs reduce lost-time claim duration, which lowers future e-mods. NCCI's formula weights lost-time claims more heavily than medical-only by a ratio that varies by state but commonly exceeds 7x. Bringing a worker back on light duty for two weeks rather than two months of lost time drops the mod impact of a single claim by 40% to 60%.
Claim cost containment. Direct relationships with occupational clinics, pre-employment physicals (where legally permitted), and immediate post-incident drug testing all reduce severity. The 2024 NCCI Drug Testing Bulletin found contractors with documented post-accident testing programs had claim costs 22% lower than those without.
Audit accuracy. Premium is calculated on actual payroll, audited annually. Misclassifying labor — paying a one- and two-family dwelling carpenter out of code 5645 instead of the lower-rated 5403 — is the single most common source of overpayment. A pre-audit by a third-party comp consultant typically pays for itself.
Large deductible programs. For contractors with payroll above roughly $5M and stable loss history, per-claim deductibles of $100,000 to $500,000 produce 15% to 25% premium savings in exchange for the contractor self-funding routine claims.
For a more granular look at how comp interacts with other labor cost components, the payroll prep calculator breaks out comp, FICA, FUTA, SUTA, and benefit loading on an hourly basis.
Beyond the four monopolistic states, 17 additional states operate competitive state funds — California (SCIF), Pennsylvania (SWIF), Texas (Texas Mutual), New York, and others — that write the small and high-hazard accounts private carriers decline. Pricing on desirable accounts is not lower than the private market; state funds simply do not refuse to quote.
Frequently Asked Questions
What is the NCCI class code for general construction labor?
There is no single class code for "general construction labor." NCCI requires that labor be classified by the trade or operation performed. The most commonly used building-trade codes are 5645 (carpentry, general), 5403 (carpentry, one- and two-family dwellings), 5190 (electrical wiring), 5183 (plumbing), 5538 (HVAC), 5445 (drywall), 5474 (painting, interior), 5475 (painting, exterior), and 5551 (roofing). Excavation, concrete, and steel erection each have separate codes. Misclassification is the leading cause of premium audit disputes.
Why are roofing workers comp rates so high?
Roofing carries the highest building-trade rate because of fall-from-elevation claim severity. NCCI Class 5551 claim data shows median indemnity costs above $148,000 per lost-time claim, with fatal-claim costs frequently exceeding $1 million in present-value benefit payments. OSHA fall protection requirements at 29 CFR 1926 Subpart M apply to roofing work at heights of six feet or more, and fall-related citations remain the most-cited OSHA standard year after year. The combination of high frequency and catastrophic severity produces loss costs that translate to manual rates of $22 to $45 per $100 of payroll across NCCI states.
How is an experience modification factor calculated?
The experience mod compares a policyholder's actual losses over the most recent three completed policy years (excluding the most recent year of coverage) against the expected losses for a business of the same size and class code mix. NCCI's formula weights lost-time claims more heavily than medical-only claims, and weights claims under a primary loss threshold (which varies by state) more heavily than excess losses. The calculation produces a single multiplier — 0.85 means 15% below expected losses, 1.25 means 25% above. The mod is calculated annually by NCCI or the state rating bureau and applied to manual premium.
Can a contractor operate without workers compensation insurance?
In every state except Texas, workers compensation coverage is mandatory for construction employers with one or more employees. Texas allows private-sector employers to opt out of the workers comp system (non-subscriber status), but non-subscribers lose statutory liability protections and face unlimited tort exposure for workplace injuries. Most general contractors require subcontractor proof of workers comp coverage as a condition of contract regardless of state. Operating without legally required coverage exposes the contractor to stop-work orders, civil penalties commonly ranging from $1,000 to $10,000 per employee per day, and personal criminal liability in several states including California and Florida.
Do owners and partners count toward workers comp payroll?
Coverage of owners, officers, and partners varies by state and business structure. NCCI states generally allow sole proprietors and partners to elect coverage or opt out, while corporate officers are presumed covered with the option to exclude. Minimum and maximum payroll caps for included owners are set by state — Florida caps officer payroll at $52,000 for premium purposes, California uses a separate weekly cap, and Texas allows complete owner exclusion. A contractor electing to exclude themselves saves premium but loses the ability to file a comp claim for their own work injuries. Verification with a state-licensed broker is essential before making the election.
