GT Insurance Blog

Insurance problems and cures

Workers Compensation Classification 2

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Getting classification right can be a dance. If your company does something uncommon or unique, you can wind up slammed into an expensive classification that may not be right.

Classifications have descriptions. States set basic rates and adopt descriptions, most commonly using data and wording from the National Council on Compensation Insurance (NCCI).

But how do you classify, for example, a glass recycler, if a state only offers reasonably relevant codes for recyclers, glass bottle dealers, and garbage haulers? The difference between those codes is significant. In that example, suppose the recycler has drivers who go to business sites, pick up waste light bulbs, and return to the recycling plant. Are they drivers or garbage collectors? They had better not be loading or unloading the truck, just taking the pallets or they will be in the higher classification.

More on this to come.

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