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Roofers Have Alternatives to State Fund Workers Comp Policies

December 14, 2023

men working on roof with safety gear

State-funded workers' compensation for roofing companies  has its benefits, but the drawbacks may be beyond what your company wants to deal with. Fortunately, alternatives are available. Rather than utilizing state fund workers' comp, some roofing companies have begun opting for private insurance with policy provisions that work better for their unique business requirements. Take a look at some alternatives.

Private Companies Authorized in THE US

Hundreds of private companies are authorized to provide workers' compensation insurance to businesses across the country, and one of them could offer the best policy for your business. 

Whereas state fund insurance programs are required to offer coverage to all businesses in the state, private workers comp coverage may not always be accessible to every business. Many state funds are insured by a private carrier, but due to the automatic eligibility of all businesses, this is often at a much higher rate. The state fund in Colorado (provided by Pinnacol) fits into this model — it’s insured privately and is a “competitive state fund” that competes against the private insurance alternatives in the state but also can’t turn anyone away.

Unlike the state fund, private companies are each able to define their own process for analyzing risks and determining your eligibility for coverage. This helps to control costs and keep premiums lower than they would otherwise be. Some private companies are especially restrictive with the sorts of businesses they’ll cover, but others are optimized to take on clients in high-risk industries and cover businesses with less management or financial history or higher loss ratios. Without these types of private companies, some employers would find it difficult to get coverage outside of the state fund option. 

Fortunately, businesses has private alternatives for high-risk businesses that allow you to avoid relying on large, quasi-government organizations. Only a private insurer can offer the level of personalized customer service and collective partnership to deliver the precision and accuracy that does not exist anywhere else in the roofing industry.


If you’re eligible, you could opt for self-insurance as a viable alternative. In this case, your business will act as its own insurance company, directly providing compensation to employees who are hurt on the job. However, This can get complicated, as you have to get permission from your state Department of Labor and Employment executive director with similar requirements in other states. Additionally, you may be required to obtain a surety bond to cover the potential of failing to pay workers' comp.

Keep in mind that self-insurance has a few requirements to meet before you can even apply. You must be a larger company with 300 full-time employees at minimum. The only way around this is to create a self-insurance pool with another business. You still have to meet the 300 full-time employee minimum, but it will count both the employees of your company and those of the business you are sharing the self-insurance pool with.

Are You Not at the Pinnacle of Your Insurance?

With the numerous frustrations roofers have faced in the state-funded insurance space lately, many are turning to workers’ comp alternatives. Quite a few benefits come along with this shift, which simply cannot be enjoyed when utilizing the state-funded model. By thinking outside of the box, you can enjoy a pay-as-you-go model — a handy solution when you don't want to pay upfront like you have to with state-funded insurance.

Hiring a PEO for workers' compensation insurance lets you offload administrative burdens to an expert team. All you need to do is make sure that it is a PEO you can trust. Roofer workers' comp insurance rates and that of the construction industry, in general, can be complicated, but hiring a PEO for comp claims management means you can focus on what you do best.

Find an Alternative With SPLI

At SPLI, our PEO services provide you with pay-as-you-go workers' comp insurance that allows you to avoid the common drawbacks of utilizing state-funded options. Get in touch with our team today to take your roofing company's workers' comp to the next level.

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