How Pay-As-You-Go Workers’ Comp Works for Roofing Companies

If you run a roofing company, chances are you’ve already run into challenges trying to secure affordable and flexible workers’ compensation insurance. Between the nature of roofing work, the higher risk of injury, and the fluctuating nature of your workforce, finding the right policy often feels like an uphill battle. For many roofing businesses, especially those that have had prior claims or operate across multiple states, it’s not uncommon to get denied coverage by standard insurance carriers or be forced into expensive state-assigned risk pools.

Even if you’re able to secure a policy, it usually comes with its own set of complications—large upfront deposits, long contracts that are difficult to get out of, and detailed audits at the end of the policy term. These issues can tie up your cash flow, disrupt operations, and add stress to running your business.

That’s why more roofing companies are turning to pay-as-you-go workers’ compensation insurance. It’s a flexible, cash-friendly alternative that aligns with the way many roofing companies operate—seasonal schedules, project-based crews, and variable payrolls. At NPN Brokers, we specialize in helping roofers get workers’ comp policies that work for them—not against them. With no audits, no contracts, and no deposits, our pay-as-you-go model gives you the freedom to pay only for what you actually need.

Why Workers’ Comp Is Complicated for Roofing Businesses

Roofing work is physically demanding, performed at heights, and often involves power tools, ladders, scaffolding, and exposure to changing weather conditions. Because of this, insurance carriers classify roofing as a high-risk industry—and they treat it accordingly. For many companies, that means higher rates, limited carrier options, and stricter underwriting requirements.

Some roofing businesses get denied coverage outright. Others may get approved, but only with inflated premiums and rigid policy structures that don’t reflect how roofing companies actually operate. If your business has filed claims in the past, that complicates the situation even more. Prior claims can put you in the high-risk category, making traditional carriers hesitant to work with you. It’s a frustrating cycle that leaves many business owners feeling like they’re out of options.

Then there’s the issue of fluctuating payroll. Roofing companies often ramp up crews during the warmer months and scale back in the off-season. If you’re on a traditional policy based on estimated annual payroll, that setup doesn’t serve you well. You might end up overpaying up front or facing a big audit bill at the end of the year when the actual numbers come in.

Plus, audits can be an administrative nightmare. If your records aren’t perfect or your payroll reports don’t match your estimates, you could be on the hook for unexpected costs. For small and mid-sized roofing businesses, this can be enough to put serious strain on finances.

These are the exact types of situations where a pay-as-you-go model makes the most sense.

How Pay-As-You-Go Workers’ Comp Works

A pay-as-you-go workers’ comp policy is designed to simplify the process and reduce upfront financial strain. Rather than paying an estimated premium based on projected annual payroll—and then adjusting it later through an audit—you only pay for the coverage you actually use during each payroll cycle. It’s a smarter, more flexible option, especially for roofing companies that deal with fluctuating staff levels and seasonal work.

Here’s how it works: When you run payroll, your premium is calculated based on your actual wages paid during that period. The premium is then withdrawn automatically or invoiced, depending on your setup. There’s no need to front a big deposit or worry about getting hit with a hefty audit down the road.

This approach aligns your insurance costs more closely with your cash flow. When you’re busy and paying more in payroll, your premiums go up. During slower periods when payroll is lower, your insurance costs adjust accordingly. It’s a model that works with your business rather than against it.

At NPN Brokers, we take this a step further. We only work with insurance companies that don’t require audits, don’t lock you into contracts, and don’t ask for large deposits. Our roofing clients love this structure because it removes the stress and unpredictability that typically comes with workers’ comp insurance.

The Benefits of Pay-As-You-Go Workers’ Comp for Roofers

There are plenty of reasons why pay-as-you-go workers’ compensation is ideal for roofing companies. The flexibility alone makes it a smart choice—but the cost control and reduced administrative burden seal the deal.

No Large Deposits
Many traditional policies require businesses to make a deposit equal to a percentage of their estimated annual premium—often thousands of dollars up front. For roofing companies, this can drain working capital that could otherwise go toward materials, labor, or marketing. With a pay-as-you-go policy, you avoid that financial burden and keep your money where it belongs: in your business.
No Annual Audits
Audits are not only time-consuming, but they also carry financial risk. If you underestimated payroll, you could get slapped with a huge bill after the policy ends. With pay-as-you-go, your premium is automatically adjusted based on what you actually paid your workers each period. Since you’re paying in real-time, there’s no need for an audit—and no surprises.
No Contracts
The roofing industry is known for its unpredictability. You may take on a large project one month and scale back the next. Long-term contracts don’t make sense when your workforce and job volume can change quickly. Our policies give you the flexibility to adapt without being locked into terms that don’t fit your business.
Better Cash Flow Management
When you’re not paying lump sums up front and instead spreading your payments across the year based on real-time data, managing cash flow becomes far easier. You’ll know what you’re paying and when you’re paying it—no more guesswork, no more scrambling.
Easier Compliance
Workers’ comp laws and requirements vary by state, and roofing businesses that work in multiple jurisdictions must ensure they’re compliant at every level. Misclassification of employees or improper code usage can lead to fines and policy issues. With NPN Brokers, we help you set up everything correctly from the start so you don’t have to worry.
Perfect for Growing Companies
If your roofing business is growing or expanding into new service areas, pay-as-you-go makes it easier to scale. Since your premium tracks with payroll, you won’t overpay during your early stages or underpay and face a big adjustment later. This structure allows roofing businesses to grow sustainably without financial penalties.

Who Qualifies for Pay-As-You-Go Workers’ Comp?

Almost any roofing company can benefit from pay-as-you-go workers’ comp—whether you’re a sole proprietor just getting started or a multi-crew contractor taking on large commercial jobs. The structure is particularly valuable for businesses that:

Work seasonally or have fluctuating payrolls
Use a combination of W2 employees and 1099 subcontractors
Have had previous workers’ comp claims
Have been declined by traditional carriers
Need coverage in multiple states or regions
Want to reduce risk and administrative burden

We’ve helped roofing companies of all sizes secure workers’ comp coverage even after they were told “no” by others. With NPN Brokers, the process is fast, and the terms are fair. You can get a quote in minutes and have active coverage in as little as 24 hours.

Common Workers’ Comp Class Codes for Roofing

Understanding how workers’ comp premiums are calculated is essential, and a big part of that comes down to using the correct class codes for your employees. These numeric codes categorize the type of work your team performs and help determine the level of risk—and in turn, the premium rate.

For roofing companies, here are the most common codes used:

5551 – Roofing – All Kinds
This is the main code used for employees who perform actual roofing work. It includes installation, repairs, and replacements involving materials like shingles, metal, tile, and membrane roofing systems.
5606 – Contractors – Executive Level Supervisors
If you have supervisors who oversee projects but don’t perform physical labor, this code may be applicable. It carries a lower premium rate because it reflects reduced exposure to injury risk.
8810 – Clerical Office Employees
Any office staff, such as schedulers, administrative personnel, or finance team members, would fall under this classification. Because these employees are not exposed to jobsite hazards, this class code comes with a significantly lower rate.

Getting your class codes right is critical. If you underreport or misclassify employees, it could lead to denied claims or serious compliance issues. NPN Brokers works with each client to ensure every role is accurately coded and accounted for in your policy.

What Sets NPN Brokers Apart

We understand the roofing business and the insurance challenges that come with it. Roofing companies aren’t cookie-cutter operations, and your workers’ comp policy shouldn’t be either. That’s why we’ve built our service around providing tailored solutions that eliminate unnecessary costs and complexity.

Fast Quotes – We’ll get you a quote in minutes so you can keep your business moving.
Coverage in 24 Hours – Once you approve your policy, we can activate it in as little as one business day.
No Audits, No Contracts, No Deposits – Just simple, transparent pay-as-you-go coverage.
High-Risk Industry Experience – We work with roofing companies every day and know how to get you the right policy, fast.
Hands-On Support – From quote to coverage, we’re here to help with class codes, compliance, and policy management.

Looking for Roofing Workers’ Comp That Actually Works?

If you’re a roofing company searching for a smarter way to manage your workers’ comp, we can help. At NPN Brokers, we’ve helped roofing businesses across the country find coverage—even those with prior claims or unique policy needs. Our pay-as-you-go workers’ comp solution is built to be flexible, affordable, and headache-free.

Give us a call at (561) 990-3022 or fill out our online quote request form today. You’ll get a quote in minutes and could be covered by tomorrow—with no audits, no contracts, and no upfront deposits.