All states in the U.S. use a classification and rating system. In most cases, these systems are broadly similar to one another. The system is composed of more than 700 governing, or group classifications, each of which represents the normal activities of a particular type of business operation. Without job classification codes, a firm employing clerical workers (Class 8810) might pay the same rate for workers’ compensation insurance as a company of trapeze artists (Class 9186).

Most classifications are called Basic Classifications, where it is the business of the employer (the insured) that is classified and not the separate employments, occupations, or operations of individual employees within the business.

However, there are exceptions. Several occupations are common across so many businesses that special classifications have been designed to fit these situations. These are called Standard Exceptions, and include jobs such as clerical office employees, drivers, chauffeurs and outside salespersons.

Some operations that look very different from the employer’s main business, but are a routine part of the business operation, are called General Inclusions. Some examples include employee cafeteria operations or workers who maintain the employer’s building.

Some businesses are considered so unusual that they are separately classified, even though they are not a secondary business. General Exclusion examples include employer-operated day care services and aircraft operations, among others.

See below for rates in different class codes that we find interesting.


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