Standard Exceptions – Which Classification Codes?

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NCCI Standard Exceptions Have Certain Class Codes 

You mentioned the Standard Exceptions question in your last post. What are they and why are they important?  A blog reader emailed this question overnight. 

Picture of woman hand with magnifying glass and codes Standard Exceptions Codes
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We will use NCCI Standard Exception Codes – classifications that are common to many businesses and that are generally not allowed to be designated as the governing classification.

The governing classification is the class code that produces the most payroll in a business. The Standard Exception Codes are:

  • 8810 – Clerical
  • 8742 – Salespersons or Collectors – Outside
  • 8871 – Clerical Telecommuter Employees
  • 7380 – Drivers, Chauffeurs, Messengers, and Their Helpers NOC—Commercial
  • 8748 – Automobile Salespersons

These do not cover all states, but most of the non-NCCI states have almost the same codes. The key is the codes cover much more than just the above exact code descriptions. Most of the time, the Standard Exception Class Codes are much less expensive than the other class codes.

These codes are the ones that are most often disallowed by workers comp premium auditors. We see Code 8810 (or its equivalent) being changed the most during audits. Documenting the job duties of any employees with the above codes is very important.   

You may always dispute the premium audit results if the employee was a clerical worker but was moved into another classification. 

2020 Update – With the Coronavirus pandemic, the Class Code 8871 – Telecommuters has quickly rushed to the forefront when analyzing the classification codes for workers that are now working out of their homes which being on lockdown.   Class Code 8871 may soon become one of the more popular standard exception codes for the new few months or years.

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James Moore

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Mgmt Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications

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