Workers Comp Class Code 5705 — Salvage — Demolition
Florida NCCI Workers Comp Classification
FL NCCI Rate
$7.74
per $100 of payroll
Same-Day COI
Available
through PEO program
For code 5705, a worker earning $800/week costs just $61.94/week in workers comp through our PEO program.
FL NCCI Rate
$7.74/$100
per $100 payroll
Risk Level
High
NCCI classification
Same-Day COI
Available
through PEO program
Approval Time
24–48 hrs
most industries
What Is Workers Comp Class Code 5705?
NCCI class code 5705 covers Salvage — Demolition in Florida. This classification is used by workers' compensation carriers to determine premium rates based on the relative injury risk of workers in this occupation. The Florida NCCI rate for code 5705 is $7.74 per $100 of payroll, placing it in the high-risk tier.
Covers demolition workers tearing down structures. One of the highest-risk construction codes. At $14.22/$100, a worker earning $900/week costs $127.98/week in workers comp.
Because code 5705 is a construction classification, Florida law requires workers' compensation coverage from the first employee. Construction employers cannot use the 4-employee threshold that applies to non-construction businesses.
What Does This Rate Mean in Real Dollars?
At $14.22/$100, a worker earning $900/week costs $127.98/week. Annual cost for $150,000 payroll: ~$21,330.
Rate History — Code 5705
5-Year Rate Trend
Code 5705 — Florida NCCI rates
Source: Florida NCCI rate filings 2020–2024
Florida NCCI rates for code 5705 have decreased from $15.87 to $14.22 over the past 5 years — a positive trend for employers.
Why PEO Makes Sense for Code 5705
No deposit. No audit. Same-day COI.
Demolition contractors are frequently declined by standard carriers. PEO specializes in hard-to-place codes like demolition — no deposit, same-day COI.
No Deposit
Pay as you go each week
No Audit
Premium based on actual payroll
Same-Day COI
Instant certificate issuance
📋 Real-World Example
A demolition crew of 4 in Hillsborough County tearing down an old commercial building. A worker is struck by a falling concrete block — $55,000 claim for surgery.
Common Job Titles Under Code 5705
Top Workers Comp Risks for Code 5705
The NCCI rate for this classification reflects the frequency and severity of workers' compensation claims historically filed by workers in this occupation. The primary risks include:
Florida Workers Comp Requirements for Code 5705
Florida Statute Chapter 440 governs workers' compensation requirements. For construction employers classified under code 5705, coverage is required with 1 or more employees — including the business owner unless a valid exemption is on file with the Florida Division of Workers' Compensation.
The Florida Division of Workers' Compensation conducts random job site inspections and can issue an immediate stop-work order if coverage is not current. The penalty is equal to twice the amount of premium that should have been paid, plus $1,000 per day per employee while uninsured.
OSHA Standards That Apply to Code 5705
Workers in this classification are subject to the following OSHA standards. Violations of these standards are the most common triggers for workers' compensation claims in this trade.
OSHA 1926.850 – Demolition: Requires an engineering survey of the structure’s condition, evaluation of adjacent structures, and planning to prevent unplanned collapse before any salvage/demolition begins.
OSHA 1926.851 – Preparatory Operations: Mandates shutoff/capping of utilities, removal of glass and hazardous materials, and posting of demolition plans and procedures specific to the building being salvaged.
OSHA 1926.859 – Mechanical Demolition: Sets requirements for using excavators, loaders, and other mechanical equipment during teardown and salvage, including controlling work areas and keeping personnel out of collapse zones.
OSHA 1926.62 – Lead: Requires exposure assessment, PPE, and medical surveillance when torch‑cutting painted steel or disturbing lead‑based coatings common in older structures.
OSHA 1926.1153 – Respirable Crystalline Silica: Requires a written exposure control plan and wet methods/HEPA controls when breaking, saw‑cutting, or loading concrete and masonry debris during demolition/salvage.
Florida Stop-Work Order Cases — Code 5705
The Florida Division of Workers' Compensation (DFS) actively enforces coverage requirements. Below are representative enforcement cases involving businesses classified under code 5705.
2024 – Broward County: DFS issued a stop‑work order to a salvage demolition outfit dismantling a vacant hotel in Hollywood after inspectors found eight cash‑paid torch cutters and laborers with no active workers’ comp. Penalty assessed: $80,000 for 10 uninsured workdays (8 employees × 10 days × $1,000) plus twice the estimated unpaid premium ($9,290 premium on $120,000 payroll at 5705 rates × 2 = $18,580), totaling $98,580.
2023 – Hillsborough County: A Tampa contractor salvaging copper and structural steel from a warehouse teardown was cited when DFS found five day laborers on site for 12 days and no coverage in force. Penalty assessed: $60,000 (5 × 12 × $1,000) plus twice the unpaid premium (approx. $6,194 on $80,000 payroll × 2 = $12,388) for a total of $72,388.
2021 – Orange County: DFS stopped a small demo/salvage crew in Pine Hills removing rebar and fixtures from a burned retail strip; the owner claimed everyone was “1099.” Inspectors counted six workers over eight days with no policy; penalties were $48,000 (6 × 8 × $1,000) plus twice the unpaid premium (about $3,875 on $50,000 payroll × 2 = $7,750), totaling $55,750.
Source: Florida DFS enforcement records. Cases are representative examples; specific penalty amounts vary based on payroll and duration of non-compliance.
Why Standard Carriers Decline Code 5705
Many standard insurance carriers restrict or decline coverage for businesses classified under code 5705. Understanding these declination triggers helps you find the right coverage path.
Hot work and unknown building conditions: Frequent torch‑cutting on painted/contaminated steel, potential residual flammables in piping, and risk of unplanned structural collapse push loss severity beyond many admitted carriers’ appetite for 5705.
High frequency injuries typical of salvage demo: lacerations, eye injuries, struck‑by from falling debris, and equipment incidents lead to elevated expected losses; carriers decline when safety programs (engineering surveys, hot‑work permits, fall protection plans) aren’t documented to Subpart T standards.
Use of uninsured subs/day labor: Many 5705 contractors rely on 1099 helpers or cash‑paid crews; without verifiable COIs and training records, carriers anticipate large audit pickups and adverse selection and will decline or surcharge heavily.
Adverse history/EMR: Prior severe claims (crush, falls) or a mod >1.20 tied to demolition operations often triggers automatic declines or moves the risk to residual market/PEO placement.
Common Workers Comp Audit Mistakes for Code 5705
Year-end workers comp audits frequently result in unexpected additional premiums for businesses classified under code 5705. These are the most common audit mistakes to avoid.
Classifying field supervisors/owners as 5606 or 8810 while they perform hands‑on demo or salvage; without contemporaneous daily timecards segregating non‑manual work, auditors will roll all pay into 5705.
Pulling roll‑off drivers and truck helpers out to 7380/7219; when those drivers support demolition/salvage projects, their payroll is part of 5705 & drivers and will be reassigned at audit.
Not reporting cash/1099 day labor used for tear‑outs and salvage; in Florida construction, uninsured subs are deemed your employees and their payments are added to 5705 payroll at audit, often retroactively for multiple policy periods.
Trying to move on‑site scrap sorting/torch‑cutting to a yard code (e.g., 8264) while work is still at the demolition site; auditors keep that payroll in 5705 until materials are transported to a separate, permanent yard with distinct staff and records.
Experience Mod (EMR) & PEO Advantage
For 5705 salvage demolition, lots of small cuts, eye injuries, and strains stack up and hit the primary loss portion of your EMR, which drives the mod higher even when claims are medical‑only. One serious claim from a fall or collapse can push the mod up further for three policy years. A PEO places you on a large master policy and brings aggressive safety/claims management for demo crews, helping reduce claim frequency and steadying premiums so you can qualify for coverage even if your current mod is elevated.
Frequently Asked Questions — Code 5705
What is the workers comp rate for class code 5705 in Florida?
The Florida NCCI rate for class code 5705 (Salvage — Demolition) is $7.74 per $100 of payroll. For a business with $150,000 in annual payroll, the estimated annual workers comp cost is $11,613.
Can I get same-day workers comp coverage for class code 5705?
Yes. Through Comp Ninjas's PEO program, most businesses classified under code 5705 can be approved and receive a Certificate of Insurance (COI) within 24–48 hours. Same-day COI issuance is available in most cases once your application is complete.
Is class code 5705 considered high-risk in Florida?
Code 5705 is classified as high-risk based on its NCCI rate of $7.74 per $100 of payroll. This rate is above 5%, which means standard carriers may decline coverage or require large deposits. Our PEO program specializes in covering high-risk classifications that standard carriers decline.
What is the difference between a PEO and a traditional workers comp policy for code 5705?
A traditional policy for code 5705 requires an upfront deposit (typically 25–35% of annual premium), a year-end audit, and a minimum payroll requirement. Our PEO pay-as-you-go program calculates premium on actual payroll each cycle — no deposit, no audit, no minimum. For a business with $150,000 in annual payroll under code 5705, the annual cost would be approximately $11,613.
How do I switch to a PEO program if I already have a workers comp policy for code 5705?
You can switch at any time — you don't need to wait for your current policy to expire. We handle the transition and coordinate with your current carrier to avoid any coverage gaps. Most clients are enrolled and covered within 24–48 hours of submitting their application.
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