Those four-digit numbers on your workers comp policy next to employee job descriptions are class codes — and they have a major impact on what you pay for coverage.
What Are Workers Comp Class Codes?
Workers comp class codes are a standardized classification system that groups similar types of work together and assigns a rate based on the relative risk of injury. The system is administered nationally by the National Council on Compensation Insurance (NCCI), though some states have their own rating bureaus.
How Class Codes Affect Your Premium
Each class code has a rate expressed in dollars per $100 of payroll. A code with a rate of $1.50 means you pay $1.50 for every $100 in payroll for employees in that category. A code with a rate of $20.00 means you pay $20.00 per $100. The difference between the right code and the wrong code can cost thousands annually.
Common Class Code Examples
Office clerical employees typically have rates under $0.50 per $100. Retail store employees run $1–$3. Landscaping runs $7–$12. Carpentry runs $10–$18. Roofing can run $15–$30+ per $100 of payroll. Exact rates vary by state and carrier.
How to Make Sure Your Codes Are Right
Work with a workers comp specialist who knows the classification system. At Comp Matters Inc., we review every client’s classifications at every renewal. Call (631) 248-2500 for a free policy review.
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