Money Saving Tips:

"Matching Informed Worker's Comp. Buyers with Competitive Sellers"

Class Codes

Tip #3: Make Sure You Use the Proper Class Codes

Over the years, every identifiable job has been classified by the insurance industry with a 4-digit number known as a Classification Code. There are now over 600 different workers comp class codes, each representing a different job; each of these class codes has a cost assigned to it, based on the risk and severity of possible injury in that job. It is important to realize that pricing is determined, to a large extent, by class codes. For example, the President of a company, like any other white collar worker, falls under the class code "8810-Clerical/Administrative". An insurance company may charge $0.32 per $100 of payroll for anyone who is considered administrative, while they may charge $5.81 per $100 of payroll for a worker who is classified as a truck driver.

The Class Code that represents the largest payroll class in a company is known as the "Governing" class code. Many companies make the mistake of putting all of their payroll in their "governing" class code rather than taking the time to see that each worker is in the right class. The significance of this can be seen in the following example.

Class Code Classification

Annual Payroll



7380 Drivers $175,000 $5.81 per $100


8013 Retail Clerks 60,000 0.63 per $100 378
8810 Administrative 150,000 0.32 per $100         480

Standard Manual Premium:


As you can see, if the entire payroll were listed under the drivers classification the premium would be substantially higher. The insurance agents that have aligned with want your business and believe they will be able to save you a significant amount on your coverage. Will every business save 30%, 50%, or 70%? Probably not, but our research has shown that the great majority will be satisfied with the end result. If nothing else, you will be able to use quotes you receive to go back to your current agent. And who knows, the agents you meet through might also help you save money on other types of insurance.

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To find the Class Codes for your business, search below. Enter a key word that describes the jobs performed. 

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