Commercial Insurance Business Owners Policy (BOP) Commercial Auto Commercial Flood Commercial Property Commercial Umbrella Data Breach Directors & Officers (D&O) Employment Practices Liability Environmental - Pollution Liability General Liability Product Liability Professional Liability (E&O) Workers Comp Personal Insurance

Workers Compensation Class Codes

Workers’ Compensation Class Codes are codes that identify different categories of work you do in the course of your job. These codes are used by insurance companies to determine the appropriate rate of premium for your business. Different states will have different codes for the same type of work, so it is important to contact your state insurance department for the correct ones.

Who Needs Workers Compensation Class Codes? 

Workers compensation class codes are used to determine the rates applied to businesses in a particular industry or trade group. Employers in businesses that carry the risk of a work-related injury or illness, such as healthcare, construction, oil and gas, and manufacturing, are required to purchase workers compensation insurance and use the state-specific class code system to properly classify their employees and determine their corresponding rates.

Types of Workers Compensation Class Codes 

1. Private Industry Class Codes: These codes are divided into two categories – Standard Industrial Classification (SIC) and North American Industrial Classification System (NAICS). These codes are used to classify workers by the type of job or industry they are employed in. 

2. Government Class Codes: These codes are typically used by state governments and the federal government to classify workers by type of job or industry. 

3. Miscellaneous Classification Codes: These are codes that are reserved for special types of workers that don’t fit neatly into one of the other two classifications. These are typically used for temporary or part-time employees, independent contractors, volunteers, students, and apprentices. 

4. Exempt Class Codes: These codes refer to individuals or organizations who are exempted from specific state workers’ compensation laws. Examples of exempt individuals or organizations include religious institutions, government agencies, and certain types of employers.

How Much Do Workers Compensation Class Codes Cost? 

The cost of Workers Compensation Class Codes varies depending on the jurisdiction and the industry. Generally, the cost of these codes is determined by the amount of risk associated with the type of business being performed by the employer. It is important to research the regulations in your state to determine the proper costs.

Workers Compensation Class Codes Requirements 

Workers’ compensation class codes are numerical codes assigned by the National Council on Compensation Insurance (NCCI) that are used to classify businesses and workers for the purpose of tracking employer liability, insurance premiums, and determining benefit eligibility. The codes are typically divided into two categories: employer codes and employee codes. To determine the specific code that needs to be used for an employer or employee, it is necessary to consult with a workers’ compensation specialist or the state’s department of labor. Employers must also provide information such as the number of employees, type of industry, and the type and amount of risk associated with the specific job class being assigned.

Workers Compensation Class Codes – The Bottom Line 

Workers compensation class codes are very important for businesses that require accurate and up-to-date insurance coverage for their employees. They are used to accurately categorize types of work, employees, and potential exposures to help ensure the right classification and the accurate pricing for premiums are given. Knowing the specific class codes associated with the job being performed can help employers obtain the most accurate coverage and cost quotes for workers compensation insurance.

Scroll to Top