What are Class Codes and why are they important?

Class codes are four-digit numbers assigned to specific job roles. They’re like barcodes that provide quick references for specific job roles. 

The National Council on Compensation Insurance (NCCI) assigns and manages these codes.

Each class code also comes with a risk rating, which measures how likely someone in that job is to get injured. This rating varies by industry and state.

For example, different types of landscaping professionals, like lawn maintenance workers, landscapers, tree trimmers, and hardscapers, all have their own class codes based on the level of risk in their roles.

Want to learn more? Check out our guide to Workers’ Comp Class Codes to get the big picture. 

What’s the role of Landscaping Workers’ Comp Class Codes?

Workers’ comp class codes play a few roles. 

• First, they help to categorize the job roles within your business. You wouldn’t want to classify a secretary the same as a tree removal specialist. 
• They also help to assess the risk level for each specific role. 
• Finally, insurance companies use them to set rates that determine how much you’ll pay for workers’ compensation coverage. 

How are Class Codes determined?

The NNCI manages all class codes, including the three components that comprise them. These include: 

1. The class code itself (which is a unique 4 digit number assigned to that job role)
2. A description that describes the job role
3. A number that represents how likely an employee in that role is to be injured or suffer a job-related illness called the risk rate

Each of these components is important. For instance, the risk rate is what insurance companies use to determine how dangerous it might be to cover someone in that role. This is why some insurance companies don’t cover high-risk employment roles. 

The risk rate for each role can change every year as new data surfaces, new technologies affect the role, and other factors change. The description and class code itself don’t usually change.

Common Landscaping Workers’ Comp Class Codes

Landscaping businesses typically fall under a few key workers' compensation class codes depending on the services they provide. 

Here are the most common ones:

Class Code 9102

This code applies exclusively to businesses that only handle basic lawn care tasks like mowing, trimming, and edging. If you don’t offer tree planting, hardscaping, or other landscaping services, your operation qualifies as “mow and blow” and falls under Class Code 9102.

Class Code 0042

This code covers comprehensive landscaping services like tree planting, flower bed installation, mulching, and limited hardscaping (e.g., laying soil or pavers). If your business offers more than basic lawn care, you’ll likely fall under this code.

Class Code 5221

This code is for businesses involved in flat concrete or cement work, such as patios, sidewalks, and driveways. Hardscaping with vertical elements, like building retaining walls, falls under a different code (masonry), but flat work is classified under Class Code 5221.

State-Specific Landscaping Workers’ Comp Class Codes

If your business is located in either Pennsylvania or Delaware, you won’t use any of those three class codes. Instead, you’ll use class code 0012. This code applies to Landscaping Contractor roles.

Non-industry class codes that may apply to your Lawn Care Business

In addition to workers performing manual labor, your landscaping business may have employees who work in administrative roles. 

These employees will still need workers’ comp insurance, but they will be classified under non-industry codes that come with lower rates, helping you reduce your premiums. 

Here’s a key code that may apply:

Clerical code 8810

Class Code 8810 applies to office staff who perform clerical duties, such as bookkeeping, scheduling, and other administrative tasks. 

Since these roles are low-risk compared to outdoor landscaping work, this code carries a much lower premium rate. Properly classifying these employees under Code 8810 can significantly reduce your overall workers’ comp costs.

If your business has salespeople who only work in the office, they may also fall under Code 8810. However, if your salespeople visit job sites, provide inspections, or give estimates in the field, they will need to be classified under a different code based on the state regulations and the nature of their work.

How do Class Codes affect Insurance Rates?

Class codes are one of the main factors insurance companies use to determine the cost of your landscaping workers’ comp coverage. The charts below show the differences in rates for the three primary landscaping workers’ comp class codes.

Workers’ Comp Class Code 0042 - Landscaping Services - Rates per State 2024

Workers’ Comp Class Code 9102 - Lawn Maintenance - Rates per State 2024

Workers’ Comp Class Code 5221 - Hardscaping - Rates per State 2024

Interested in learning how these rates will affect the cost of workers’ compensation for your business? You can dig deeper into the topic in this Guide to Landscaping Workers’ Comp Rates. 

Tips to ensure your Class Codes are correct

Want to ensure that your workers and your business are protected but your bottom line isn’t affected by the cost of workers’ compensation insurance? It pays to make sure your landscaping workers’ comp class codes are correct.

Why does it matter? Remember when we mentioned that each class code carried a specific risk rate? If you classify a worker in a lower-risk position with a higher-risk class code, guess what happens: you pay more for workers’ compensation coverage. 

The insurance company doesn’t know that the employee isn’t out in the field mowing lawns and is instead answering phones in the office. If they’re classified as a landscaping contractor, they’re assigned the same risk level as someone doing a much more dangerous job.

So, how do you ensure that your class codes are accurate? 

Work with your insurance agent 

One of the simplest options is to work hand-in-hand with your insurance agent. They’ll help you understand which landscaping workers’ comp codes apply to which employees so that you get the best rates possible. 

This will also help you avoid penalties for making mistakes (paying too little because of misclassification, for instance).

Review job roles

We recommend that you regularly review your employees’ job duties. Have those duties changed over time? Has their role within the organization evolved? 

It’s not unusual for a person to start in one position and then move up or make lateral moves over time. Base the class code assigned to each employee on an accurate, up-to-date understanding of their duties and responsibilities. 

Keep up to date

Class codes aren’t static. While the code itself might not change, other things will, particularly the risk rating for the position. 

Many factors play into this rating, including environmental risks, the benefits of using modern safety equipment, and numerous others. Stay abreast of changes to the class codes so you can ensure that you’ve assigned the right ones to the right people.

Get the right coverage with accurate Class Codes

Questions about landscaping workers’ comp class codes? We can help. Get an instant quote on workers’ comp coverage or just start a conversation with one of our agents – you can reach us at 886-338-8823. 

At Kickstand Insurance, we specialize in working with landscaping companies like yours to find the best possible rates without sacrificing coverage.