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Most Reclassified Class Codes – NCCI Report Covers 2021 Top 10

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2021 Most Reclassified Class Codes – NCCI Releases New Report

One of the reports that I watch for each year from NCCI is the most reclassified class codes from the prior year(s).   Check out this article on  NCCI’s Reclassified Class Codes for 2020.

Some readers may find this article boring – until the surprising premium audit bill arrives with a 10-day payment deadline.

The list itself has not changed that much over the last few years.  The rankings in the list have changed every year.  Below is a graphic of the list.  Check out the NCCI  article here.

2021 Top 10 Rankings – Most Reclassified Class Codes

infographic Most Reclassified Class Codes
(C) NCCI – Boca Raton, FL

 Governing Class Code vs. Individual Employee Reclassification

One question that J&L has received often over the years is – What is a Governing Class Code?  The NCCI article covers governing classification codes.  I will use the definition from the article:

The governing code, as defined in NCCI’s Basic Manual for Workers Compensation and Employers Liability Insurance (Basic Manual), 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 governing class code change refers to a company-wide change, not just a premium auditor moving a few employees from one class code to another.   If your company is moved to a more expensive governing class code, the results can be a huge premium increase from the prior year.

Which Codes Does J&L See Changing the Most?

The Store classification codes generate the most Governing Class Code questions that we have received since we have been in business.  The questions were not specific to NCCI.  The WCIRB (California) also generates many questions with their interpretation of the Store codes.

On an individual employee basis, we used to see the 8810 Class Code changing to another code quite often.  Premium auditors have become very adept at spotting employees that should not have a  Clerical Classification.

Workers Comp – like many industries has its own set of acronyms and terms to decipher. Check out our article from last week where we recommended NCCI’s free micro-learning (1-minute) video library. 

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James J Moore - Workers Comp Expert

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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