Most Reclassified Workers Comp Governing Class Code 2020 – NCCI

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Top 10 Most Reclassified Workers Comp Governing Class Codes – NCCI

Every year, I try to cover the most reclassified Workers Comp Governing Class Codes. The NCCI provided a great video and handout here. 

One point to note – the reclassified codes were the governing class codes.

Governing Class Codes Are Important For Comparison

Governing class codes are:

  • That classification, or combination of related companion classifications, other than the Standard Exception classification(s), to which the largest amount of payroll, exclusive of the payroll of miscellaneous employees, is assigned.
  • Notice that Codes 8810 and 8742 were switched the most – to an insurance company code 8723 Insurance Companies.   I found that to be an interesting switch.

As you look at the below table,  NOC (Not Otherwise Classified) to me, means that the classification code defaulted to this code.

Based on the data from the Program, the table below includes the top 10 governing codes reclassified between 2018 and 2020 and the top code to which each of these codes was reassigned.

reclassified governing workers comp class codes top 10 infographic
(c) NCCI – Boca Raton, FL All Rights Reserved

Reclassified Workers Comp Class Code 3632 Covered By NCCI This Year

As last year, NCCI covered one of the Top 10 Governing Workers Comp Class Codes.  This year it was Class Code 3632 Machine Shop NOC.

Code 3632 applies to automotive machine shops that do not work on vehicles but on parts or engines that have been removed from the vehicle. This classification also applies to employers that manufacture projectile and shell casings or perform tool sharpening operations for industrial tools.

Let us look at what the 3632 Code was reclassified to by NCCI.

Worker Comp Class Code 3632 Alternatives

These three class codes cover 53% of which class codes the business was switched to post-inspection.  That number still leaves 47% as switched to other codes.

  • 3629—Machined Parts Mfg. NOC
  • 3612—Pump Mfg.
  •  3113—Tool Mfg.—Not Drop or Machine Forged NOC

I did not list the reasons for each governing class code switch.  The article covers those in detail.  Once again thanks to Christine Pike at NCCI for her assistance in producing this article.

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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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