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Most Expensive Classification Code in Texas Is USL&H Code

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The Most Expensive Classification Code in Texas Involves USL&H

The Most Expensive Classification Code in Texas. I was working on a project for a client that had a large % of their operations in Texas.  The Texas Relativity schedules for 2013 (usually known as Classification Codes) indicated that 6874F was the most expensive code.  The rate was 16.81 per $100 of payroll.

Clip art Map Of Texas Classification Code Most Expensive
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The 16.81 relativity rate of Texas does not mean this is the charged rate for that state.  As I have mentioned often, the advisory rates are usually lower than the actual premium rate charged by insurance carriers.

The class code 6874F has the “F” appended to it. The notation means the classification is considered a USL&H Code.  USL&H is the acronym for United States Longshoreman and Harbor Workers.   The class code 6874 is Ship Hull Painting.

If one Googles the class code, many of the insurance carriers will not underwrite that class code.  The code often appears on the prohibited class code list.

Business People In Conference Classification Code Paying Attention
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The amount of risk involved would likely be the reason for not underwriting employers with that code.  We have found the number of carriers that will underwrite any type of USL&H exposure is limited at best.

Classification code 6872F – Ship Hull Repair is also one of the most expensive class codes.  In fact, the advisory rate in New Jersey is actually somewhat higher than 6874F.   Janitorial services are actually the highest New Jersey advisory loss cost.

The relativities (loss costs) are set by the rating bureau’s actuaries on a periodic basis – usually yearly.   There is great variation from state to state on the advisory loss costs.   I used to try to say that a certain class code is the most expensive across-the-board.  After many emails from the blog readers, I came to realize there is such a great variation on advisory loss costs from state to state.

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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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