Workers’ compensation insurance in Florida and around 40 other states, use a classification code program made by the Nationwide Council on Payment Insurance policy (NCCI) to fee insurance plan rates differently for teams of personnel. There are around 600 class codes, and the two principal codes employed for staff members in the landscaping marketplace are 0042 and 9102.
I normally encounter landscape routine maintenance companies that have their workforce misclassified and are ready to not only receive a 50% reduction on their existing coverage premiums, but are also in a position to file for reimbursements from overpayments on past staff payment insurance policies.
These activities and several other inquiries about how these classification codes might be applied with each other on a coverage, have introduced to my attention a have to have to converse particular details to the landscaping sector about the works by using of workers payment codes 0042 and 9102.
First, let’s start off with a brief description of each classification code with estimates from NCCI’s official descriptions:
Course Code 0042 – Applies to staff members mainly engaged in scheduling, clearing, grading, laying of sod, seeding, and planting needed for landscape installation operations. Planting of trees, shrubs, and bouquets are categorized to this code alongside with general gardening things to do.
Class Code 9102 – Applies to employees that complete upkeep of lawns, grounds, and gardens. “The servicing may require lawn mowing, raking, software of liquid or granular fertilizer, spraying and trimming of shrubs or little trees from the ground, and thatching or aerating. If any one particular or all of the higher than operations are executed by a lawn upkeep risk labeled to Code 9102, then slight and incidental landscaping functions done by the very same threat, these as the substitution of lifeless shrubs, the planting of a several bouquets, and the inserting of rock or brick as edging patterns are provided less than Code 9102. This insignificant landscaping operation is distinguished from perform carried out by an insured at a task or spot exactly where the principal function at the job or locale is landscaping. Given that garden spraying is a servicing operation, a danger engaged exclusively in work of this mother nature is categorized to Code 9102.”
In Florida, the 2010 rates for theses class codes are 6.36 for code 0042 and 3.49 for code 9102. In the other states, class code 0042 also has a considerably larger rating than course code 9102. For companies in the landscaping business, this emphasizes the importance of distinguishing in between the two classification codes.
In lots of states, employees that have interaction in both equally landscape installation and landscape servicing activities can have their corresponding payroll divided in between the course codes if suitable data are maintained. Seek the advice of with your coverage agent for the specific classification guidelines in your nearby point out. In accordance to the point out exception wording underneath the 9102 course code, Florida landscaping firms can use course code 0042 and 9102 on their workers’ payment coverage only if all those “operations described by these classifications are done by independent crews.”