Workers’ Compensation Rates by Class Codes

looking up workers’ compensation rates by class codes
By: 
Mordechai Kamenetsky
Last Updated: 
January 30, 2024
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Workers' compensation insurance premiums are set using class codes that reflect the nature of work performed. These codes help insurers to assign appropriate rates based on the level of risk associated with different job types.

Table of Contents

Workers’ Compensation Rates by Class Codes

The rates by class code listed here represent an average across various states from one of our main partner carriers:

Class Code Description Rate per $100 of payroll
0035 Farm - Planting and Harvesting - Cannabis Growers $2.04
0042 Landscaping Service $4.62
0106 Tree Trimming - Pruning - Removal $8.22
0923 Residential Cleaning Service - Housekeepers $1.77
2121 Breweries, Craft Beers $1.51
2157 Winery - Wine Makers $4.50
3632 Machine Shop $2.18
3724 Garage Door Installation $3.15
3821 Salvage Yard - Automobile Recycling $4.93
5022 Masonry Construction $7.41
5102 Door & Window Installers $5.73
5183 Plumbing Contractors $2.96
5190 Electrical Work - Electrician $2.67
5348 Ceramic, Tile and Stone Work $4.04
5403 Residential Construction - Home Builders - Remodelers - Siding $5.46
5437 Trim- Finish Carpenters - Cabinets - Countertops $4.82
5474 Painting Contractor $5.77
5551 Roofing Contractors $12.34
6216 Excavation and Grading Work $4.67
6400 Fence Installation & Repair $4.47
7219 Towing Company $6.54
7380 Non-Emergency Medical Transportation - Taxi - Limousine - Airport Shuttle $5.06
7600 Alarm Installation and Repair $4.03
7720 Security Guards - Patrol Officers $2.64
8006 Gas Stations - Convenience Stores $1.71
8017 Retail Stores - Merchandise - Cannabis Dispensary $1.32
8292 Warehousing and Storage Facility $3.12
8742 Sales Professional $0.24
8810 Clerical - Office Employee $0.11
8832 Animal Shelters and Kennels - Veterinarian $0.27
8868 Group Homes -Temporary Shelters-Disability Facility $0.35
9014 Janitorial Service Contractors - Pest Control - Exterminating - Chimney $2.49
9015 Building Operations By Contractor $2.50
9052 Hotels and Motels $1.76
9060 Golf Courses and Country Clubs $1.20
9061 Shooting Range - Amusement Park $1.10
9063 Fitness Center - Health Clubs - YMCA Programs $0.71
9102 Lawn Service and Maintenance $2.61
9402 Refuse Collection - Garbage - Trash Service $4.47

Keep in mind that these figures are estimates to give you a general idea of potential rates. 

What are Class Codes in Workers' Compensation?

When you purchase workers' compensation insurance, your premiums are based on the risks associated with the work your employees perform. To figure out the level of risk, insurance companies use class codes. Class codes are three- or four-digit codes that represent different types of work. Each code has a corresponding rate that reflects the likelihood of injury or illness associated with that type of work.

For example, a landscaper will have a different class code and rate than an office worker. The landscaper's job is more physically demanding and carries a higher risk of injury, so their rate would be higher. The office worker's job is less physically demanding and carries a lower risk of injury, so their rate would be lower.

Make sure that your employees are classified correctly, as incorrect classification can lead to incorrect premiums. This is where it's important to work with an insurance company that understands the nuances of class codes and can help you navigate the system.

Use our instant quote today to get started on finding the right workers' compensation insurance for your business.

How to Calculate your Premium 

If you want to know how much a workers’ comp insurance policy will cost, you can get a rough idea by doing a bit of math. It’s simpler than it looks, just follow the steps below.

Follow a simple formula:  (Annual Employee Payroll / $100) x Industry Rate = Your Estimated Premium

workers' comp calculation

First, take your total annual payroll and divide by $100.

Next, find your estimated rate - reach out to an insurance agent or refer to the provided rate chart above. 

Remember that this is an approximation, and the actual premium will also include fees and taxes and other things like that. 

watch this video


Watch this video to learn more about calculating your workers’ comp rate.
  

Strategies for lowering Premiums

By improving workplace safety and regularly reviewing your class codes, you can reduce the risk of accidents and claims, which will ultimately help to lower your premiums.

Improving Workplace Safety

One way to lower your workers' compensation premiums is to improve workplace safety. By implementing safety protocols and providing training to your employees, you can reduce the risk of accidents and injuries on the job. This can help to lower your claims and, in turn, lower your premiums.

Some strategies for improving workplace safety include:

Conducting regular safety audits to identify potential hazards

Conducting regular safety audits to identify potential hazards

Providing ongoing safety training to employees

Providing ongoing safety training to employees

Encouraging employees to report safety concerns or hazards

Encouraging employees to report safety concerns or hazards

Ensuring that all employees have access to proper safety equipment and protective gear

Ensuring that all employees have access to proper safety equipment and protective gear

By taking these steps, you can help to create a safer work environment and reduce the risk of accidents and injuries.

Regularly reviewing Class Codes

Another way to lower your workers' compensation premiums is to regularly review your class codes. By reviewing your codes regularly, you can ensure that you are accurately classified and that you are paying the appropriate premiums. This can help to prevent overpayment and reduce your overall costs.

Some strategies for reviewing your classification codes include:

Consulting with an insurance professional to ensure that you are classified correctly

Consulting with an insurance professional to ensure that you are classified correctly

Reviewing your codes regularly to ensure that they are up-to-date and accurate

Reviewing your codes regularly to ensure that they are up-to-date and accurate

Providing documentation to support any changes to your classification codes

Providing documentation to support any changes to your classification codes

By taking these steps, you can ensure that you are paying the appropriate premiums and that you are accurately classified based on the work you do.

From our files
From Our Files:

A pest control business in North Carolina with interior remodeling services approached us seeking to lower their insurance premiums. The owner was already classifying employees in three distinct classes: pest control (code 9014), interior framing (code 5645), and interior construction services (code 5437).

Reviewing the client's policy, we identified an opportunity to classify further. Employees who installed sun pumps were reclassified under plumbing (code 5183). Through meticulous payroll splitting and finding a carrier offering competitive rates, we reduced their premium from $24,000 to an impressive $10,170!

How much will workers’ comp insurance cost you?

Now that you know how workers' compensation rates are determined and what factors affect them, it's time to get a quote for your business. Simply enter your business information, including your industry and number of employees, and our tool will generate a quote for you in seconds.

Don't risk your business by not having the proper workers' compensation insurance. Get a quote today to get the coverage you need at a price you can afford.

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Note: The information provided in this blog is intended for general informational purposes only and is not a substitute for professional legal or insurance advice. Laws and regulations regarding workers' compensation insurance are complex and vary by state and by specific circumstances. Therefore, readers are encouraged to consult with a qualified legal or insurance professional to obtain advice with respect to any particular issue or problem they might have.

Mordechai Kamenetsky

Mordechai Kamenetsky, co-founder and lead agent of Kickstand, is recognized as an expert in workers' compensation. He is passionate about helping small businesses manage risks and lower their workers' comp costs. In his articles, he educates readers and clients on the intricacies of workers' comp insurance.

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