• Menu
  • Skip to main content
  • Skip to secondary navigation
  • Skip to primary sidebar
  • Skip to footer

Before Header

  • About
  • Contact
  • Privacy
 
ARCADIA: Stronger Settlement Partnerships. Innovative Solutions.

Amaxx Workers Comp Blog

Reduce Workers Compensation Costs By 20-50%

Header Right

  • Home
    • Training Center
  • Search
    • Free Resources & Solutions
    • Subscribe to Free Newsletter
    • Create Free Training Center Account
    • Enroll in On-Demand Courses
    • Activate WC Mastery Membership
    • Request Strategic Coaching Session
    • Buy WC Guidebooks
  • Membership
    • Insider (free account)
    • WC Mastery
    • Teams & Managers Mastery
    • Training Partners
  • Products
    • On-Demand Courses
    • Specialty Courses
    • Certifications & Mastery Courses
    • Ultimate Guidebooks
    • Coaching
  • Blog
    • Video Blogs
    • COVID-19 / Coronavirus Pandemic
  • Login

Mobile Menu

  • Home
    • Training Center
  • Search
    • Free Resources & Solutions
    • Subscribe to Free Newsletter
    • Create Free Training Center Account
    • Enroll in On-Demand Courses
    • Activate WC Mastery Membership
    • Request Strategic Coaching Session
    • Buy WC Guidebooks
  • Membership
    • Insider (free account)
    • WC Mastery
    • Teams & Managers Mastery
    • Training Partners
  • Products
    • On-Demand Courses
    • Specialty Courses
    • Certifications & Mastery Courses
    • Ultimate Guidebooks
    • Coaching
  • Blog
    • Video Blogs
    • COVID-19 / Coronavirus Pandemic
  • Login
  • About
  • Contact
  • Privacy
You are here: Home / Management Commitment / The Ins and Outs of the NCCI and Classification

The Ins and Outs of the NCCI and Classification

April 8, 2010 By //  by Robert Elliott, J.D. Leave a Comment

Often when discussing lowering workers’ comp premiums employers are advised to be sure they have correct NCCI classifications for their employees.

Unfortunately, classification is more than just consulting a convenient list on line. This difficult process requires the assistance of a professional in some aspect of workers’ compensation. It is doubtful employers without an insurance background would know where to start getting their classifications reassigned.

National Council of Compensation (NCCI) is owned by a group of insurance companies and operated by the executives of these participating insurers. They function as a U.S. insurance rating and data collection bureau that specializes in workers compensation, annually compiling data from outcomes of millions of workers’ comp claims and policies

Click Link to Access Free PDF Download

“5 Critical Metrics To Measure Workers’ Comp Success”

NCCI and participating insurance companies have a complicated relationship with the states they operate in. Much of the heavy-duty workers’ comp statutory regulation promulgated by states is derived from their relationship with NCCI. In theory NCCI is a not for profit. However, everything they produce is regarded as private, copyrighted material so any information you attempt to extract from them comes with a price tag.

NCCI GOVERNS (or not) AS FOLLOWS:

In 34 states classifications begin and end with the (NCCI).

Four monopolistic states, ND, OH,WA and WY, does not govern.

Not considered NCCI states: (12) CA, TX, MN, WI, IN, MI, PA, NY, MA, NJ, DE and NC.

Of these 12, they break out as follows:

States with rating bureaus: (5) CA, NJ, NY, DE and PA

TEXAS: Is a hybrid — using NCCI but making some changes to it.

License NCCI/use smaller parts of it: (6) MN, WI, IN, MI, MA, NC

No matter how we slice it, NCCI does not make it easy for employers to classify/reclassify.

Classifications by NCCI are based on overall industry type, not each specific job function therein. A few exceptions are clerical, outside sales, and often drivers. Construction is the only industry where classifications are assigned at the employee level, depending on actual work because the exposure is so much greater for workers who do roofing and high-rise construction.

If you suspect your business or employees are/were misclassified, you have several ways to investigate.

  1. Contact your agent. Even though your agent probably did the misclassification of your business in the first place, the agent is also the first line of defense. Contact them and ask them to reassess.
  2. Contact a workers’ compensation consultant. Workers’ comp consultants are experts at navigating through the complicated infrastructure in which the NCCI, the states where you operate, and the multiplicity of insurers co-exist.
  3. Contact the NCCI directly. They do charge a fee for their services but they are a good resource. NCCI produces several manuals each year, among them a manual called the “Scopes Manual” containing the classification codes for employment types. There is a fee to purchase the manual. (workersxzcompxzkit).
  4. Contact Your State Workers’ Compensation Bureau to request an onsite inspection and rating.

    FREE DOWNLOAD: “5 Critical Metrics To Measure Workers’ Comp Success”

The process of NCCI classification is an art, not a science and there seems to be is a great deal more latitude in classifications than one might suspect. Be an active advocate in your reclassification quest and follow up diligently.

Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers’ Compensation costs, including airlines, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: Robert_Elliott@ReduceYourWorkersComp.com or 860-553-6604.

_Health_Strategies/index.php

WC Calculator: http://www.reduceyourworkerscomp.com/calculator.php

Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers’ comp issues.
©2010 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ ReduceYourWorkersComp.com.

FREE DOWNLOAD: “5 Critical Metrics To Measure Workers’ Comp Success”

Filed Under: Management Commitment Tagged With: Worker Reclassification, Workers Comp Classifications

Related Articles

Avoiding the Hidden Costs in Work Comp Claims

Avoiding the Hidden Costs in Work Comp Claims

The Statue of Workers’ Comp Liberty

The Statue of Workers’ Comp Liberty

3 Techniques To Gain Workers’ Comp Management Commitment

3 Techniques To Gain Workers’ Comp Management Commitment

Why Your Work Comp Program May Have Fallen Short This Year

Why Your Work Comp Program May Have Fallen Short This Year

The Company With The Best Information Wins In Workers Comp

The Company With The Best Information Wins In Workers Comp

I Can’t Let Go of the Memory

I Can’t Let Go of the Memory

The Best News Tidbits from the Workers Comp Community

The Best News Tidbits from the Workers Comp Community

Workers Comp Tidbits of News You Can Use

Workers Comp Tidbits of News You Can Use

The Employer Is The Last To Know

The Employer Is The Last To Know

How to Handle the Worst News in Company History

How to Handle the Worst News in Company History

Is Playing Cards Like Having Sex on The Job

Is Playing Cards Like Having Sex on The Job

Workers Compensation News From Around the Net

Workers Compensation News From Around the Net

Free Download

5 Critical Metrics To Measure Workers’ Comp Success - FREE Download Click Here Now!

Train to Succeed

BECOME CERTIFIED IN WORKERS’ COMPENSATION

Proven Course Catalog & WC Toolbox Give You The Power To Achieve Lower Costs and Better Injured Worker Outcomes

VISIT WORKERS' COMP TRAINING CENTER

Previous Post: « Workplace Safety Issues Circle the Globe
Next Post: Montana Study Says Claims Cost Behind High Workers’ Comp Rates »

Reader Interactions

Leave a Reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

FREE DOWNLOAD

5 Critical Metrics To Measure Workers’ Comp Success - FREE Download Click Here Now!

Our Sponsors

ARCADIA - Enhancing Settlement Outcomes

The Structured Settlements Company
 

Catastrophic and Risk Solutions, Case Management Solutions, and Specialty Networks
 

Post-Settlement Administration
 

Medcor

Injury Triage, Onsite Clinics

Read Our Award-Winning Blog

Blog Categories

Search Our Archive

Subscribe to Our FREE Newsletter

Return-to-Work Essentials

Footer

Search Our Archive

Search our continually growing archive of over 2500 articles about Workers' Comp issues.

Quiclinks

  • Calculators
  • Terms & Abbreviations
  • Glossary of WC Premium Terms
  • WC Resources
  • Best Practices
  • Industries
  • Return-to-Work Essentials

RSS Recent Blog Posts

  • 6 Factors to Consider in Failed Return To Work
  • Rethinking Wellness Programs in Workers’ Comp
  • 11 Tips for Taking an Effective Recorded Statement in Workers’ Compensation Claims
SUBSCRIBE TO OUR FEE NEWSLETTER
Let Us Help You Stomp Down the High Cost of Workers' Comp!
Top of Page ↑
  • Home
  • Training Center
  • Search
  • Membership
  • Products
  • Blog
  • About
  • Contact
  • Subscribe
  • Login
Copyright © 2023 Amaxx, LLC. All Rights Reserved. · Privacy Policy / Legal Notice