As an agent or CSR it is very important that you use the correct worker’s compensation class codes when quoting. You can sign up for NCCI’s Scopes Manual and search using keywords. But even with that tool, there are several risks misclassified with the wrong class code. Even if you call 1-800-NCCI-123 and get free advice on the correct class code to use, some businesses are not described by any classification so you must assign the classification that most closely describes the business and occasionally there could be one or two class codes that may work. It is ultimately up to the carrier to determine which class to use. Here are some common class codes and types of risks that can be confusing on which class code is correct.
- 0042 – This is landscaping (new planting, mulching, etc.) not lawn care which is code 9102 which has confusing name: Park NOC – All Employees & Drivers. Also related to this is above ground tree trimming which should be code 0106. If they do ground level tree trimming, the correct class code is 9102 for that exposure. Also, if the employees do both 0042 and 9102 work, most carriers would use the higher rated class, in this example all payrolls would be under 0042 unless they also did above ground tree work.
- Janitorial is another one misunderstood. Code 9014 is for commercial cleaning only. If they do residential as well the correct class code is 0917.
- Remodeling. This one can be tricky. If they only do interior work that is not major renovations like adding or removing a structural wall, adding an addition, and not doing exterior work, the appropriate construction class codes should be used. This could be 5348 for tile, 5445 for drywall, 5437 for interior trim, etc. If they do any structural framing, then the class is 5645. This applies to handyman exposure as well.
- 9015 and 9012: These classes are used primarily for property management for HOAs and Condo Associations. The key difference is if the entity owns the property. If they do not, the appropriate construction class codes should be used.
- 9082, 9083, 9084: Is it fast food, regular service or a bar? 9083 fast food is for quick food service like McDonalds which is code 9083. Regular restaurants with sit down service is 9082. If they make more money on alcohol, then it is most likely a bar code 9084. Class 9084 applies to those businesses whose receipts from the sale of alcoholic beverages are greater than 50% of their entire gross receipts for the policy term. Any delivery would fall to class 7380.
- 8810 clerical v. at home employees. If an employee is working in the office at a desk, they are classified as 8810. However, if they work from home, in most states, they are telecommuters code 8871. These classes can be used for limited work outside the office including mail pick up and delivery, bank deposits, buying office supplies, entering the non-clerical areas at a business for the purpose of delivering paychecks. This class is not suitable for outside meetings, supervising non-clerical staff, performing physical labor or doing any work in a non-clerical work place.
- Pressure Washing. General ground level pressure washing is code 9014 janitorial, but if they also do roofs washes it may require code 5551. Power or pressure cleaning when performed above ground level is to be separately rated to Code 9170.
- Concrete Work: Ground supported Flat work like driveways and sidewalks is code 5221. For making/erecting concrete forms, reinforcing steel (rebar), elevated self-supported concrete, class 5213 could be applicable. Class 5215 applies to employers that perform concrete construction, only if no other classification more specifically describes the employer’s business Residential construction such as foundations, footers will fall under 5215.
- If a high-net-worth individual has employees in the home, they are typically not covered by homeowners. They need WC. Codes are 0908 for employees working 19 or less weekly hours regardless of duties. Or 0913 for 20+ weekly hours. Note, Omega writes these classes exclusively even for those who have round the clock nursing care for a private individual. These classes are flat fee based so we do not need payrolls.
- Solar Panel Installation. This typically requires code 5551 since the employees get on the roof.
- Pest Control. Pest control falls under code 9014: Exterminator & Termite Control, Drivers. Any use of poisonous gas, fumigation or tenting would fall under class 4828.
- Car washes, including mobile washes. If they wash with pressure washer, code is 9014, without it is 8380.
- Outside Sales class 8742: Assign Code 8742 to employees who perform salesperson or collector duties away from the employer’s premises. This is not the correct classification if the employee delivers or picks up merchandise. Class code 7380 applies when they do.
For a WC quote, email keith@omega4agents.com or call 866-997-0711 x 205. Disclaimer: The above information is provided from 25+ years of experience with writing workers’ compensation. The above accuracy is limited to Omega’s own knowledge, research, and experience.