Workers Compensation Classification Codes Part II

Workers Compensation Classification Codes Part II

The main area I wanted to cover here today, which should have been covered last Friday, is how to tell if your Classification Codes are wrong. This is a very tough one, but here are some observations that we had while reviewing Workers Comp policies:

• You have NOC in your Classification Code
• The Classification Code is not what you do in your business.
• The NCCI or State Rating Bureau has never inspected your business
• Sometimes the Class Codes can be wrong if you have just been inspected (Catch 22)
• The NCCI, Insurance carrier or Insurance Company Payroll Auditor has abruptly changed your Classification Code
• Along with the abrupt change, you receive a very large Workers Comp premium bill
• You have two or more very distinct businesses that are being classified in one "umbrella" class code
• Your competitors are being classified differently
• The #1 way to know is that you or someone in your company has a gut feeling that your Class Code is wrong, or there is something that is wrong overall with your Workers Comp insurance policy - that is when we receive most of our calls and emails, and gut feelings are right about 80% - 90% of the time.

I will add to this list as time permits. Those are the ones that I can remember off the top of my head. I am on the road this week traveling to the West Virginia NCCI Conference. West Virginia has come a long way from a monopolistic state for Workers Compensation to a full open market. Brickstreet has been the interim monopolistic private carrier for the last two years, and will be the carrier until July 1, 2008.