Workers Compensation Class Codes
Looking for workers compensation class codes? This site was built for you! We have a class code list for every state, all right here in the same place, for free! We gather our lists as published by the department of insurance of each state, and publish links to the original material for your convenience.
What are work comp class codes?
Workers compensation class codes are codes that the insurance companies use to identify specific categories of work. For instance, you know a contractor supervisor by his title, however an insurance company knows him as “5606”.
Insurance companies need to be able to categorize various types of work into class codes to be able to effectively estimate workers compensation rates for each type of work.
For example, a 5606 (Contractor) will have more expensive work comp rate than an 8810 (Clerical) employee, because more dangerous work is being performed.
The insurance companies will then take all losses accumulated by each class code, and use them to factor a base rate for that type of work. If a particular company has proven to have losses above or below the industry average, their rate of insurance will adjust accordingly.
Why do some states have different class codes for the same type of work?
The rules and regulations for work comp are unique for every state. Most states utilize the NCCI class code system. They are the national council on compensation insurance, and have helped add consistency for work comp classifications across state lines. With states that use the NCCI workers compensation class codes, the classifications remain the same for each of those states. However, some states still remain independent, or monopolistic.
What is the National Council on Compensation Insurance (NCCI)?
NCCI is and independent advisory organization that is largely funded by insurance companies. Most insurance companies use the NCCI for various services, including statistical data for workers compensation rates. NCCI functions to obtain and provide accurate statistical loss data that is used to set manual rates for workers compensation insurance. NCCI is the most widely used classification system in the United States.
What states do not use the NCCI classification codes?
There are only a few states that do not use the NCCI workers compensation class codes. Those states are California, New Jersey, New York, Delaware, and Pennsylvania. Texas has recently converted over to the NCCI classification system; however, they do have significant variations in specific classification rules. While most states do use the NCCI class codes, it is important to remember that some states have additional workers compensation class codes that are unique to their state.
What is the NCCI Scopes Manual?
The NCCI scopes manual is used by insurance professionals (Such as underwriters) to identify the class code associated with each type of occupational work. The code is a three or four digit number associated to each type, or “classification” of work. The scopes manual offers detailed underwriting information that elaborates on how every type of work should be classified. Since the scopes manual is the industry standard for workers compensation class codes, it is important for every underwriter to have a copy. You can purchase directly from the NCCI Online Catalog.
Workers Compensation Class Code Chart
Use our chart below to find and view a comprehensive index of work comp classification codes for your state. Our class code lists also include a general description for each code, as well a link to the governing authority that published the list for your state.
*Disclaimer: All information found in this website must be verified and used in conjunction with the appropriate authoritative council.
You can also view our list of Workers Compensation State Funds by State:
Workers Compensation Class Codes