Make sure you get fair and appropriate premium rates.


Classifications play a vital role in the world of workers' compensation insurance, as they standardize premium calculations and group businesses according to industry and job types. By reflecting differences in risk exposure and hazards, classifications ensure a fair and appropriate premium rate for each business, while facilitating comparisons among those in similar industries.

Assigning accurate classifications is essential for understanding risk exposure and managing workers' compensation costs. Staying informed on updates, notifying carriers of operational changes, and regularly reviewing classifications contribute to the overall efficiency and fairness of the workers' compensation system.

Purpose of Classifications

  • Standardizes workers' compensation premium calculations
  • Categorizes businesses by industry and job types
  • Reflects differences in risk exposure and hazards

Classification System Structure

  • Defined by a numerical code and description
  • Over 700 unique classification codes
  • Based on industry, operations, and work performed

Accurate Classification Benefits

  • Ensures fair and appropriate premium rates
  • Facilitates comparisons among businesses in similar industries
  • Promotes better understanding of risk exposure

Classification Assignment Process

  • Conducted by insurance carriers or rating bureaus
  • Involves analyzing business operations and job duties
  • May require on-site inspections and payroll audits

Managing Classification Changes

  • Stay informed on classification updates and revisions
  • Notify insurance carriers of significant operational changes
  • Regularly review classifications for accuracy and relevance

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