|
Workers' Compensation Classifications
The fundamental concept that different jobs have different exposures to injury or illness led to the practice of classifying workers according to risk. The classifications are the starting point for determining how much in insurance premiums a company will pay for each type of job. Most job classifications are determined by the National Council on Compensation Insurance (NCCI). The NCCI's classification "bible," known as the Scopes Manual, is a highly specific description and rating of more than 700 types of jobs. The number of classifications has grown steadily as the workplace and the economy have evolved. Software programmers and computer-chip makers, for example, got their own classifications in 1992. The NCCI constantly reviews and changes its manual to identify those classifications that no longer seem viable and to create new classifications that may be needed.
To arrive at an initial estimated premium, each type of job is given a classification code and a premium rate expressed in cost per $100 of pay. For example, clerical workers (NCCI Job Code No. 8810) may be assessed 29 cents per $100 of pay, while a driver (Job Code No. 7380) may be rated
|
