The Worker's Compensation code with the highest cost in California is 5552--Roofing, according to J&L Risk Management Consultants. This is due to the severity and number of accidents occurring to people working in this profession. The second highest is 9185--Carnival or Circus – all workers.
Insurance companies use worker's compensation class codes to identify specific work categories, according to Class Codes. Insurance companies create a base rate by estimating worker's compensation rates for each code, accounting for all losses accumulated by the specific code. Companies with more claims than average pay more than the base rate for worker's compensation insurance, while companies with fewer than average claims pay less than the base rate.
Most states use the National Council on Compensation Insurance class code system for worker's compensation insurance. The states that do not use NCCI class codes are California, New Jersey, New York, Delaware and Pennsylvania. The National Council on Compensation Insurance is an advisory organization funded by insurance companies, and it prepares objective recommendations for insurance rates and loss costs by gathering data and analyzing industry trends, according to the NCCI website. Worker's compensation insurance professionals can purchase hardback or online copies of the NCCI Basic Manual for Workers Compensation and Employers Liability Insurance and the NCCI Scopes Manual, which insurance professionals use to identify the class code associated with each type of work, on the NCCI website.