If you run a painting business with employees, workers' compensation insurance isn't just a good idea—it's the law in almost every state. But here's what catches most painting contractors off guard: your premium isn't just based on how many painters you employ. It's a complex calculation involving class codes, payroll, your safety record, and even the specific type of painting work you do. Get classified wrong, and you could be paying double what you should. Let's break down everything you need to know about workers' comp for painting contractors.
When You're Required to Carry Workers' Comp
The moment you hire your first employee in most states, you're on the hook for workers' compensation coverage. States like California, New Jersey, and New York don't mess around—even one part-time worker triggers the requirement. Florida has different rules depending on whether you're in construction (which includes painting), requiring coverage with just one employee for construction companies while general businesses need four or more.
Only Texas and South Dakota don't mandate workers' comp for painting businesses. In Texas, you can technically opt out, but that's a risky move. Without coverage, if an employee gets hurt on the job, you're personally liable for their medical bills, lost wages, and potentially a lawsuit. For most painting contractors, the insurance premium is a lot cheaper than one serious injury claim.
Georgia requires coverage after you hire three or more workers, while Florida lets painting businesses hire up to four employees before mandating coverage. But here's the thing: even if your state doesn't require it yet, many general contractors won't work with you unless you have workers' comp. It's become a standard requirement for getting on bid lists and winning commercial jobs.
Understanding Class Code 5474 and What It Covers
Your workers' comp premium is calculated based on your classification code, and for most painting contractors, that's NCCI class code 5474. This code covers both interior and exterior painting on residential and commercial structures made of wood, concrete, stone, or combinations thereof. It includes the installation and dismantling of scaffolding, incidental finishing work, and minor patchwork or repairs to wallboard in connection with painting.
The National Council on Compensation Insurance (NCCI) establishes these codes and updates them yearly based on claims data. Most states follow NCCI classifications, though some have their own state-specific codes. Whether you're painting windows, applying tinted coatings, working on exteriors, or line-painting parking lots, you'll typically fall under code 5474.
But watch out for scope creep. If you start doing work beyond basic painting—like remodeling, carpentry, or drywall installation—you could get reclassified into a higher-risk category with much steeper rates. A painting contractor with $100,000 in payroll might pay $5,570 per year under code 5474, but if reclassified as a remodeler, that same policy could jump to $11,000 annually. Keep your painting work separate from other contracting work, or at least track the payroll separately so you're not overpaying.
What You'll Actually Pay: 2025 Rates and Costs
In 2025, the national average workers' comp rate for painting contractors is about $5.57 per $100 of payroll. For most painters, that works out to roughly $211 per month per employee, or around $231 monthly for businesses with employees. So if you have an annual payroll of $100,000, expect a base premium around $5,570 for the year.
But that national average hides huge state-by-state variations. North Dakota has the lowest rates at $2.54 per $100 of payroll, while New York tops out at $13.20. That means the same painting business with identical payroll could pay $2,540 annually in North Dakota versus $13,200 in New York. Location matters—a lot.
Your actual premium also depends on your payroll size, specific job duties, workplace safety record, and prior claims. Insurance companies calculate rates in dollars and cents per $100 of payroll for each class code, then apply your experience modification rate (more on that in a moment) to arrive at your final premium. The bottom line: painting contractors should budget between 2.5% and 13% of their payroll for workers' comp, depending on their state and safety record.
How Your Experience Mod Affects Your Premium
Here's where your safety record really hits your wallet. Your experience modification rate (EMR or E-Mod) reflects your business's likelihood of injury compared to similar painting companies. It's calculated based on your claims history over the previous three years—so your 2025 mod considers data from 2021, 2022, and 2023.
A business with average risk has an EMR of 1.0. If your EMR is 0.95, you're safer than average and you'll pay 5% less than the base rate. But if your EMR climbs to 1.05, you'll pay 5% more. That might not sound like much, but on a $10,000 annual premium, a 1.20 EMR means you're paying an extra $2,000 every year just because of past claims.
An unfavorable EMR doesn't just cost you money—it can cost you work. Many general contractors and government agencies won't contract with businesses that have an EMR above 1.40. They see a high mod as a red flag that you're not serious about safety. Keep your EMR low by preventing injuries, training employees properly, enforcing PPE requirements, and managing claims quickly and correctly. A poorly handled claim can stick to your record for years and drive up your rates.
Common Claims and How to Prevent Them
Falls are the number one workers' comp claim for painting contractors. Ladders, scaffolding, and rooftops are inherently risky, and when painters fall, the injuries are serious—broken bones, head trauma, back injuries. Other common claims include chemical exposure from paints and solvents, shoulder injuries from repetitive overhead work, back and arm strains from lifting and reaching, and eye damage from paint splatters or debris.
You can't eliminate risk entirely, but you can reduce it dramatically. Provide regular fall protection and ladder safety training. Make sure your crew uses proper scaffolding and inspects equipment before every job. Enforce strict PPE requirements—respirators for spray painting, safety glasses, gloves, and non-slip footwear. Train your team on proper lifting techniques and job rotation to avoid repetitive strain injuries.
Developing a culture focused on injury prevention pays off. Contractors who implement comprehensive safety programs—regular training, strict PPE enforcement, safety meetings, and hazard assessments—see fewer accidents and lower liability claims. That translates directly into lower insurance premiums over time through improved experience modification rates. Safety isn't just about protecting your crew; it's about protecting your bottom line.
Getting the Right Coverage for Your Business
Shop around for workers' comp quotes, because rates vary significantly between insurance carriers even for the same classification. Make sure your insurer understands exactly what kind of painting work you do—interior, exterior, residential, commercial—so you're classified correctly. Misclassification can either leave you underinsured or force you to overpay for coverage you don't need.
If you use subcontractors, verify they carry their own workers' comp. If they don't, their payroll might get added to yours, spiking your premium. Get certificates of insurance from every sub before they start work, and keep those certificates on file. It's a simple step that can save you thousands.
Finally, review your policy annually. As your business grows, your payroll changes, and your claims history evolves, your premium should adjust accordingly. If you've had a clean year with no claims, push for a better rate. If your EMR has dropped, make sure that's reflected in your renewal. Workers' comp is one of your biggest insurance expenses as a painting contractor—treat it like the significant business cost it is, and manage it actively.
