What is Painting/Waterproofing - Low Wage Workers Compensation (class code: 5474)?
Painting/Waterproofing - Low Wage Workers Compensation (class code: 5474) is a type of workers’ compensation insurance classification for businesses that perform painting, coating, and waterproofing work, typically on buildings and other structures. This coverage helps protect employees and employers when job-related injuries or illnesses occur.
Workers’ compensation is usually required by state law for businesses with employees. It is designed to pay for medical care and a portion of lost wages if a covered employee is injured while working. Class code 5474 helps insurers understand the kind of work your employees do so they can evaluate risk and set an appropriate premium.
Who needs this coverage?
This classification is generally used for businesses that focus on painting and waterproofing work, especially where wages are at the lower end of the industry scale. Examples may include:
- Exterior and interior painting contractors
- Waterproofing contractors for foundations, walls, and roofs
- Small painting crews working on residential or light commercial projects
- Subcontractors providing painting or coating services on construction jobs
If your employees regularly use ladders, scaffolding, sprayers, or waterproofing materials on job sites, you may fall under class code 5474 or a related code, depending on your specific operations and state rules.
What does Painting/Waterproofing workers compensation typically cover?
While details vary by insurer and state, workers’ compensation for class code 5474 usually includes coverage for:
- Medical expenses related to a covered work injury or illness, such as doctor visits, hospital stays, and prescriptions.
- Partial wage replacement if an employee cannot work for a period of time because of a covered injury.
- Rehabilitation services, including physical therapy or vocational training, when needed to help the employee return to work.
- Benefits for permanent disability, if an injury causes lasting impairment, as defined by applicable law.
- Employer liability protection for certain work-related injury claims, up to policy limits and subject to state law.
This coverage is focused on job-related incidents, such as falls from ladders, injuries from tools or equipment, or exposure to certain materials used in painting and waterproofing.
Common exclusions and limitations
Workers’ compensation policies do not cover every situation. Typical exclusions and limitations may include:
- Injuries that occur outside the course and scope of employment
- Intentional or fraudulent claims
- Injuries that happen while an employee is under the influence of drugs or alcohol, where allowed by law
- Independent contractors who are not classified as employees, unless they are specifically covered
- Liabilities outside the workers’ compensation system, such as certain contractual disputes
Actual exclusions depend on the policy language and state regulations. Always review your policy documents to understand what is and is not covered.
Factors that influence cost
The cost of workers’ compensation for class code 5474 can vary widely from one business to another. Common factors include:
- Payroll and number of employees in painting and waterproofing roles
- Type of work performed (interior vs. exterior, height of structures, use of scaffolding, etc.)
- Claims history and past workplace injuries or losses
- Safety practices, training programs, and use of protective equipment
- State and local regulations that affect benefits and rating rules
Insurers use your class code, payroll, and loss history to help determine your premium, subject to applicable rating plans and guidelines.
Proof of insurance and compliance
Most states require employers with one or more employees to carry workers’ compensation insurance, though exact thresholds and rules vary. Painting and waterproofing contractors are often asked to show proof of coverage before:
- Signing a contract with a general contractor or property owner
- Pulling certain building or trade permits
- Working on commercial or government projects
Proof of insurance is usually provided in the form of a certificate of insurance that lists your workers’ compensation policy details. Keeping your coverage active and up to date can help you stay compliant with state requirements and meet client expectations.
How to get a quote
To get a workers’ compensation quote for Painting/Waterproofing - Low Wage (class code: 5474), you will typically need basic information about your business, including your operations, estimated annual payroll, and any prior claims. You can start the process and request a quote by visiting our online quote form.
Frequently Asked Questions
What type of work falls under class code 5474?
Class code 5474 generally applies to businesses whose primary operations involve painting, coating, or waterproofing buildings and similar structures. This can include interior and exterior painting, surface preparation, and applying sealants or waterproofing materials, subject to state-specific classification rules.
Are part-time or seasonal painters covered by workers’ compensation?
In many cases, part-time and seasonal employees must be included on your workers’ compensation policy if they meet your state’s definition of an employee. Coverage requirements vary, so it is important to confirm how your state treats part-time and seasonal workers.
Does workers’ compensation cover injuries from falls off ladders or scaffolding?
If the fall happens in the course and scope of the employee’s job duties and is otherwise covered under the policy and state law, workers’ compensation may help pay for related medical care and a portion of lost wages. Specific outcomes depend on the facts of the claim and applicable regulations.
How is my payroll assigned to class code 5474?
Insurers typically assign payroll to class codes based on the type of work each employee performs. If an employee mainly does painting or waterproofing, their payroll may be rated under class code 5474, subject to state classification rules and any applicable exceptions.
Can subcontractors be covered under my workers’ compensation policy?
Some policies allow you to include certain subcontractors as covered workers, while others require subcontractors to carry their own coverage. Rules vary by insurer and state, so review your policy and consult with your insurance professional about how subcontractors are handled.
Still have questions? Talk to a local insurance expert.