Another great question from one of the blog readers – We received our Workers Comp policy for this year. We noticed that all of our positions – Classification Codes have an NOC on the end of them. What does NOC mean?
NOC stands for Not Otherwise Classified. If you see this on a Workers Comp policy or premium audit, it means that the Classification Code is non-specific. There are usually more specific Class Codes, however, the underwriter or premium auditor could not place your business in any other Classification Codes other than the more general ones.
For instance, Store Employees, NOC means that the classification of your employees could not be associated with a more specific code. This is one of the most common mistakes that we see on policies and audits by the insurance carriers. These Class Codes are much more expensive as the NOC Classification Codes are seen as more risky. The more specific Class Codes can be a more accurate assessment of the employees covered in the policy.
If your receive a policy or premium audit with any NOC’s on it, there could possibly be a more specific Class Code. The previous example could be more specific by using the Store: Clothing or Wearing Apparel Classification Code. This type of Class Code will always be less expensive than the NOC code.