Reclassified Class Code During 2019 Inspections – Which Code Changed The Most?
NCCI recently released a quick report on the most reclassified class code for 2019. We have seen this class code very often in the last five years. Which was one was it?
The most reclassified class code for 2018 can be found in an article I wrote earlier. That Classification Code was 9015 – Building or Property Management—All Other Employees.
We received many questions on that reclassification. Some companies, consultants, and other workers comp experts were a little confused. We answered them by going over the article. Check that one out. The link is in the above paragraph.
The most reclassified class code for 2018 – 2019 was 8006 – the 7-11 QuikTrip code but not for all 7-11’s or QuikTrip’s. The exact NCCI Class Code moniker is 8006 – Gasoline Station – Self-Service and Convenience/Grocery Retail.
Let’s not cover the whole class code. I sometimes will provide the whole Class Code page – instead, we will concentrate on which codes were assigned in place of 8006.
NCCI Governing Class Code Definition
One of the most popular questions that we have received in our 24+ years of business is
“Why is our business rated under one classification code.” The answer from the article is:
The governing code, as defined in NCCI’s Basic Manual for Workers Compensation and Employers Liability Insurance (Basic Manual) Rule 1-B-5, is the basic classification at a specific job or location (other than a standard exception code) that produces the greatest amount of payroll. If a change to a policyholder’s governing class code occurs (as documented on an NCCI Inspection & Classification Report), then the governing code is considered reclassified.
The other one is – wait, we have had Class Code 8810 Clerical/Administrative reclassified the most in our business. The article was referring to the Governing Class Code.
Code 8006 – Which Class Code Was Substituted?
The answer would be these codes were substituted for 8006. NCCI was kind enough to share three different Class Codes. They are:
- 8033 Store – Meat and Grocery, and Provision Combined – Retail NOC – as a side note look very closely when your business is rated under a NOC (Not Otherwise Classified) operation – Check the 10 Red Flags Article for clarification
- 9083 – Restaurant – Fast Food
- 8017 – Store – Retail NOC
I will not cover the exact specifications within each reclassified class code. Please read the NCCI article.
A quick summary of why the codes were changed:
- 8033 – handling of fresh meats
- 9083 – sales receipts for the food and beverage service exceeded 50% of the overall sales.
- 8017 – did not sell a variety of items that are typically sold at a convenience or grocery store or kiosk operations that sold prepackaged snacks, sandwiches, and beverages.
The 8017 Class Code has created many lively debates over the past few years as this code is very interrelated with so many other reclassified class codes.
If any of this seemed confusing or if you disagree, please comment below. We would love to hear any questions on the Reclassified Class Code 8006 at any time.
©J&L Risk Management Inc Copyright Notice
