I receive a large number of comments and questions every time that I post on the NCCI and State Rating Bureau Workers Compensation Codes 8810 and 8742. As we all know, the two codes usually represent the lowest rates for Workers Compensation Classification Codes. Classification Codes 8810 and 8742 are also known as Standard Exception codes. The definition of Standard Exceptions can be found by clicking the Definitions Tab on the right side of the screen.
There are a number of rules on Standard Exception codes – especially 8810 Clerical. One of the most common mistakes by employers is the employee or group of employees perform the duties allowed under the code – but not 100% of the time. As I have posted very often, if an employee spends one minute performing a higher risk task, then the employee will not be rated under the Classification Code 8810.
The insurance carriers at premium audit are very picky about this Class Code. There are some exceptions to the 100% requirement, but not many. It is very rare that the NCCI or State Rating Bureau will allow the premium to be allocated on a pro-rata basis on how many hours the employee or employees worked in each job.
Next up – Class Code 8742 – the most misunderstood classification code.
Article provided by James J Moore, AIC, MBA, ChFC, ARM. All articles are original content. Check out the full website at www.cutcompcosts.com.