Top 7 Most Commonly Confused Class Codes
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Yes, it happens. Sometimes, we confuse our own kids names, and they always have a funny way of making sure we know the wrong name slipped out. If only we had those sweet reminders for our other innocent mistakes. Identifying the appropriate class code is a vital part of a staffing company's operations. Misclassifications could impact the bottom dollar revenue, and there isn't always someone around to catch it.
This month, we're continuing on with our classification code series by looking at some of the more commonly confused codes and how to identify the accurate one for your client.
1. Wholesale NOC (8018)
2. Warehousing (8292)
3. Freight Handling (7360)
Class code 8018 and Class Code 8292 are often miscoded since the phraseology of the two is very similar. There's one question you can ask to easily identify which code is correct: does the warehouse storing the goods have interest in the product they're storing? If the answer is yes, then the correct class code is most likely 8018. Wholesalers have equity interest (ownership) in the goods they have in their warehouse, while warehousing operations store goods owned by others.
Class code 8292 is also easily confused with class code 7360. The best way to distinguish these codes is to look at the period of time the goods are stored at the warehouse. Warehousing operations normally store goods for a long period of time, while freight handlers are constantly moving goods in and out of storage. Also, if you find the word logistics in the operations description of the business, that can also lead you towards the 7360 code.
4. Drivers (7380)
5. Trucking (7228/7229)
7228 and 7229 are applicable to the transportation of goods NOT owned by an insured, while 7380 is applicable to the driving of vehicles and/or the transportation of goods owned by the insured. NCCI defines local trucking (7228) as within 200 miles from the point of principle garaging, while 7229 is to be used when traveling in excess of 200 miles from the point of principal garaging.
6. Debris Removal (5610)
7. Janitorial Services (9014)
Class code 5610 is a construction code for positions that remove debris left by the construction crews after completion, including scrap lumber and material. 9014 is used for actual businesses hired to clean and prepare a location for its intended use, such as mopping, sweeping, scrubbing etc
Sources: NCCI Scopes Manual, SilverPlume
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