Are you using Workers Compensation Class Codes correctly?
These four codes are common to the work truck and trailer manufacturing industry and impact your premiums.
Class code 3824
Class code 3824 is the auto, truck, trailer body, and bus building class code for workers’ compensation. 90 to 95% of manufacturers are going to have that class code on their policy. 3824 is the governing class for most trailer and truck body builders. It is also the highest rated class. Other codes are available and some of those codes can help lower costs.
Class code 3822
Class code 3822 is also for auto, truck, trailer body, bus manufacturing. However, it is slightly different. Some companies may be able to qualify for this class code if they are not doing any welding. For example, companies that buy components and bolt their trailers together can use this code. As a general rule, the cost for 3822 is slightly less than the cost for 3824 and is something that we are always looking for when evaluating workers compensation policies.
Class code 9505
Class code 9505 is for auto, truck, trailer body painting. If you have employees that are dedicated to painting you can separate their payroll and put them into class code 9505. There is a caveat, you have to make sure that your paint booth is in a separate area of the building, walled off, or in a separate building not attached to your main production facility. Also, employees who paint are not allowed to do anything else. The rules for the trailer and truck body manufacturing class states that you cannot split an employee’s payroll from one class to another class.
Class code 8393
Class code 8393 is a very common code that is typically used in the automobile industry for body shops and auto repair. In fact, it is the only code for auto body repair and would be rare for a truck body builder to get this and almost impossible for a trailer manufacturer to get. However, there are exceptions and it is worth exploring in some cases.
Class codes 8810, 8742 and 7380
These other class codes can impact your premiums and overall workers compensation costs. Be sure you are using them properly.
- 8810 is for clerical and the lowest rate that you can get.
- 8742 is for people that are out, and about selling on the road, etc.
- 7380 is for drivers who deliver trailers to their final destination.
If you are involved in the manufacture and distribution of trailers or work trucks, you already have one or more of these class codes on your workers comp policy. If you not sure whether you are using the codes the right way for lowering your premiums, reach out to us and ask. You can use the button below to schedule a call or call us at (478) 449-5928.