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8742 Class Code And Your Company – Often Misunderstood

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8742 Class Code Salespeople Messengers and Outside Collectors

One of the most misunderstood  is 8742 Class Code also known as the Salespeople, Messengers, and Outside Collectors Class Code.  8742 along with Class Code 8810 are the most popular Standard Exception Codes. Please click on the link for more on Standard Exception Codes.

Picture Of Woman Receiving Package 8742 Class Code With Messenger
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8742 is not a clerical type classification code such as 8810. If the employee delivers any of the material being sold, Class Code 8742 would likely not apply. This Standard Exception code can cover many types of jobs, even sports agents.

Florida and Massachusetts are the only two states that do not recognize this classification code. Judging from our premium audit reviews, this code can often be assigned by analogy. Assignment by analogy occurs when a job type that does not perfectly fit is assigned to the one that closest represents the class code.  

Assignment by analogy involves a large amount of intuitiveness by the premium auditor. For instance, a newspaper reporter is usually assigned the 8742 class code. A reporter is a messenger of a type, but it is quite a stretch. Most of the time,  it is used for for salespeople. One key is the job duties performed by the employee must be off-site in almost all cases.   The off-site part of the job description is critical.  

There are a few circumstances where it may seem that the 8742 class code is a perfect fit. However, if a class code has the All Employees moniker then 8742 is not allowed as a class code. Some classification codes are all-inclusive such as 8829 Home For the Aged – All employees.

The All Employees moniker removes certain codes known as Standard Exception codes from that type of employer.   Click on the first red link in this article to completely understand Standard Exceptions.    

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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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