If you’re looking to hire or start a roofing company in Florida, it is imperative that you’re familiar with Class Code 5551. In the world of workers’ compensation, this is the one code that can protect you and your employees from a world of worry and financial struggles. Known as a high risk workers’ compensation code, Code 5551 includes employees in all facets of the roofing industry, yard employees and drivers.
As we discussed briefly in last week’s blog, when a roofer steps on your roof, they automatically become your responsibility in a way. So if a worker was to slip or fall and suffer an unfortunate accident of any kind, you could end up being responsible for a wide range of hefty medical bills.
This is where the workers’ compensation class code 5551 comes into play. When you are covered by this code, the insurance company will cover nearly all roofing employees that work for your company. If you’re a customer that’s looking to hire a roofing company, making sure this code is in place before you do is essential.
Even though Code 5551 may seem all inclusive when it comes to roofing, it is important to note that there are a few rare cases where an employee may be excluded from Code 5551. For instance, if a worker manages a storage facility or works full time at a roofing material yard, they won’t be covered. Here’s another case that you should take into consideration. If a worker works on a metal building that has a continual curved line and there is no clear difference between the roof and the sides of the building, they won’t be covered under this code. Please keep in mind that this code is designed to protect roofing companies. So if you happen to be a company that specializes in carpentry or any other service and you happen to take on roofing jobs on the side, you may have some challenges applying Code 5551.
The Ins and Outs of Workers’ Compensation Rates
As an employer, it is important that you understand just how much workers’ compensation rates can fluctuate. In fact, these rates vary from year to year and are different depending on where your business is based. According to a quarterly report that was done by Consolidated Risk Solutions, a leading construction and technology company, workers’ compensation rates for Code 5551 were steadily decreasing in Florida from 2005 – 2010. However, since then, rates have seen a slight increase each year.
Who determines these rates? In Florida, all workers’ compensation rates are exhibited by the National Council of Compensation Insurance (NCCI). This is a third party company that examines claims from all employees that fall under this class code and takes a wide range of data into account before presenting its findings and recommendations to the Florida Office of Insurance Regulation. Once the rates are decided, they are then used by different insurance carriers throughout the state.
Try to keep in mind that this is just a small part of how your total premium is calculated. Don’t be afraid to speak with w representative at your insurance company and work hard to get the best possible deal that you can. At the end of the day, you should aim to get the best possible coverage without having to spend a ridiculous amount of money. This should be no different than the logic you use when you are negotiating life insurance or your monthly rates for car insurance.
So what are you waiting for? Now that you understand the importance of workers’ compensation and Code 5551, take the proper steps to ensure that your company is covered. Remember this code can be applied to anyone who performs roof installation and/or repairs, works to remove mold, dirt and mildew, and even those who specialize in pressure washing. If this sounds like the kind of services that you specialize in, pick up the phone and ask your insurance company about Code 5551 today.
If you’re a customer that’s looking to hire a quality roof cleaning company, don’t forget to ask about Code 5551 as you are going over the pros and cons of each company. No matter how attractive and affordable a company may seem, making sure you are properly protected may be the most important requirement of them all. In South Florida, experienced companies such as Fiddler Roof Cleaning pay close attention to Code 5551. Doing your research will undoubtedly safe you a great deal of time and money in the often complex world of workers’ compensation.