A Standard Exceptions class codes 8810 and 8742. We have received so many questions on these two class codes that I thought that I would post about them again. These NCCI (R) Class Codes are also used by the various state rating bureaus in the US. Why are they so popular?
These two Class Codes are called Standard Exceptions. What does that mean? In almost all cases a business is given a governing class code. Let’s say that we have a trucking company that does only long haul trucking. Their class code is 7229 (different in certain states). Should the office workers and salespeople be classified as long haul truckers? They should not.
Quite some time ago, the rating bureaus all figured out that if an employer is paying the same Workers’ Comp insurance premiums for a truck driver as a salesperson or office worker, they were being overcharged for employees that were smaller risks. The Standard Exception Codes can apply to almost any company. As they are much smaller risk categories, the rates are much lower than most other positions.
Their is a caveat to Standard Exceptions. If an office worker (Class Code 8810) works for one hour a week as a mechanic or working around the trucks, this employee will be classified as a long haul trucker in this example. Their complete pay (remuneration) will be classified as a long haul trucker.Workers Comp premium auditors have become very adept at separating out the Standard Exception workers from the rest of the company.
There are pages and pages of Class Code information for 8810 and 8742. Office workers and salespeople are not the only workers that can be classified under these two codes. If you use the search box on the right side of the page and search for Class Code 8810 or 8742, you will find some of the other types of workers that can fall under these codes.
Article provided by James J Moore, AIC, MBA, ChFC, ARM. All articles are original content. Check out the full website at www.cutcompcosts.com.