Workers’ compensation classification codes group types of work with similar risk characteristics. They are one of the inputs used to price workers’ comp coverage. Use the helper below to turn a plain-English business description into the closest industry currently supported by our calculators.
Suggested industry
Landscaping
Top 5 reasons we think this is right
iThis is a best guess, not an official classification decision. The exact workers’ compensation class can depend on the work actually performed, employee duties and carrier rules. A licensed agent or insurer should confirm the final classification.
Workers’ comp codes, class codes and classification codes
People use several phrases for the same basic research task: workers’ comp codes, workers’ compensation class codes, WC class codes and workers’ compensation classification codes. The important part is not the wording of the search—it is matching the code to the actual business operation and the rules that apply in the state where the work is performed.
What is a workers’ compensation classification code?
A workers’ compensation classification code is a label used to identify a type of business operation or employee work for insurance rating purposes. The code helps connect payroll to the risk characteristics of the work. Office clerical work, roofing, auto repair and restaurant operations are treated differently because the day-to-day hazards are different.
Classification code vs. industry vs. insurance rate
Industry
A broad plain-English description of the business, such as landscaping, plumbing or retail.
Classification code
A more specific workers’ comp category used under the applicable state or rating system.
Rate
A pricing input associated with the classification. The final premium can still change based on carrier, payroll, claims history and other underwriting factors.
Why classification codes vary by state
There is not one universal class-code table that works identically everywhere. State rules and rating systems differ, and some jurisdictions maintain their own classification structures. For that reason, the helper asks for the state before showing possible class codes used by the 10 Second Quotes calculator.
Why the description of the work matters
Classification depends on what the business actually does, not simply the company name. “ABC Services” provides almost no useful clue. “Residential plumbing repair and water-heater installation” describes the operation much more clearly. When a business performs more than one kind of work, the final policy may require more than one classification.
Are workers’ comp class codes the same as NAICS or SIC codes?
No. NAICS and SIC are business-industry classification systems used for other purposes. Workers’ compensation classifications are insurance-rating categories and should not be assumed to match NAICS or SIC one-for-one.
Does a classification code determine my final premium?
It is an important rating input, but it does not determine the final premium by itself. Payroll, carrier pricing, claims experience, underwriting and other factors can also matter.
Who makes the final classification decision?
The final policy classification should be confirmed by the insurer, licensed agent or applicable rating authority based on the actual business operations.