Workers’ Comp Class Codes for the Oil and Gas Industry

The oil and gas industry operates under some of the strictest workers’ compensation requirements in the United States. With dangerous work environments, heavy equipment, and unique job classifications, insurance carriers pay close attention to how employees are categorized. This is where workers’ comp class codes come in.

Class codes are the numeric identifiers used by the National Council on Compensation Insurance (NCCI) or state-specific bureaus to classify types of work. These codes directly affect the cost of your workers’ compensation insurance, your compliance status, and the overall accuracy of your coverage. In a high-risk field like oil and gas, proper classification is absolutely essential.

In this blog, we’ll go in depth on the most common oil and gas class codes, why proper classification matters, and how NPN Brokers can help ensure your business is covered quickly and at competitive rates—even if you’ve struggled with prior claims.

Why Class Codes Matter in the Oil and Gas Industry

Workers’ comp premiums are calculated based on your payroll, claims history, and the classification codes assigned to your employees. Each code reflects the level of risk associated with a specific type of work. For example, an office clerk working for an oil and gas company will fall under a much lower-rated class code than a roustabout working on a drilling rig.

Misclassifying workers can have serious consequences:

• Overpaying for coverage: If employees are classified under riskier codes than necessary, your premiums may be much higher than they should be.
• Underpaying and facing penalties: If workers are under-classified, you may face audits, penalties, or uncovered claims when accidents occur.
• Compliance issues: States and carriers require accurate classification to ensure both employees and employers are protected. Misclassification can lead to denied claims and regulatory problems.
• Audits and back charges: Insurers conduct audits to reconcile payroll and class codes. Incorrect classifications can result in large, unexpected bills at audit time.

For oil and gas businesses, where risks vary dramatically depending on the role, getting the classification right is not optional—it is critical.

Common Oil and Gas Class Codes

Below are some of the most frequently used class codes in the oil and gas sector. Depending on your state, these may vary slightly, but they serve as the foundation for how employees are categorized.

Code 1320: Oil or Gas Lease Work – Surface

This code applies to employees engaged in surface operations of oil or gas leases. It typically includes workers handling equipment setup, well maintenance, and lease operations that do not involve drilling or production.

Code 6235: Oil or Gas Well Drilling – By Contractors

This class code is for drilling contractors and covers workers directly involved in drilling wells. It is one of the higher-risk codes because of exposure to heavy equipment, rig hazards, and the possibility of blowouts or falls.

Code 6236: Oil or Gas Well Operation – By Contractors

This code applies to the operation of producing oil or gas wells. Workers classified here are responsible for running and maintaining wells after they have been drilled. Risks include machinery, chemicals, and field conditions.

Code 6237: Oil or Gas Well Servicing – By Contractors

Servicing codes apply to employees working on existing wells to improve production, including acidizing, fracturing, or workover services. This class code is distinct from drilling, as it involves ongoing well maintenance and enhancement.

Code 6204: Oil or Gas Well – Cleaning or Swabbing of Old Wells

This code covers contractors who specialize in cleaning and maintaining old or dormant wells. The risks involve confined spaces, gas exposure, and unstable structures.

Code 6238: Oil or Gas Pipeline Construction

Pipeline construction employees fall under this code. It includes laying new pipelines, welding, and related construction activities. The risks are high because of trenching, welding hazards, and remote work locations.

Code 3634: Valve Manufacturing (Oil and Gas Related)

While not a field code, valve manufacturing for oil and gas operations has its own classification. It covers employees involved in manufacturing and machining valves for use in pipelines and rigs.

Code 8810: Clerical Office Employees (Oil and Gas Companies)

Even oil and gas businesses have office workers who fall under low-risk clerical codes. Employees performing strictly office duties—like accounting, administrative work, or payroll—are properly placed in 8810.

Code 8742: Outside Sales Employees

This code applies to outside sales personnel who may visit job sites but are not actively engaged in drilling, servicing, or manual labor.

How Misclassification Happens in Oil and Gas

With so many moving parts and specialized roles, it is not uncommon for misclassification to occur. For example, a business might place a servicing crew under a drilling code or vice versa. This can lead to inflated premiums or, worse, uncovered claims if the insurer deems the classification incorrect after an accident.

Sometimes employers mistakenly classify clerical workers under field codes, which drives up costs unnecessarily. Other times, workers who split time between field and office are not properly allocated, creating compliance issues.

Because oil and gas involves high-risk operations, carriers pay close attention to classification. Errors are rarely overlooked and often come back in the form of costly audits.

Why Proper Classification is Critical

Getting the right class codes on your policy ensures that:

• Premiums are accurate: You pay only for the actual risks your employees face, nothing more.
• Claims are covered: Employees injured in the field will have their claims processed smoothly without disputes over classification.
• You avoid penalties: Regulatory bodies and insurers both penalize misclassification, which can be avoided with accurate coding.
• You stay competitive: Lower EMRs and fair premiums make it easier to bid on contracts in the oil and gas sector.

For many oil and gas companies, workers’ compensation insurance is not just a legal requirement—it is also a prerequisite for contracts. Accurate classification can be the difference between winning or losing valuable projects.

How NPN Brokers Helps Oil and Gas Businesses Stay Compliant

At NPN Brokers, we work with oil and gas companies every day. We understand the complexity of class codes, the challenges of past claims, and the financial strain that comes with inflated premiums. Our role is to make the process simple, accurate, and fast.

Here’s how we can help:

• Proper Code Assignment: We review your operations and ensure each employee is classified correctly, protecting your business from overcharges and penalties.
• Coverage in as Little as 24 Hours: Oil and gas operations move fast, and delays in securing workers’ comp can stall projects. We can get coverage in place quickly.
• No Deposits, No Contracts, No Audits: Our Pay As You Go programs are designed for flexibility, so you pay only for what you need.
• Specialized Carriers for High Risk Industries: We work with insurance markets willing to cover oil and gas businesses, even if you have prior claims.
• Competitive Rates: By shopping your policy across multiple carriers, we find coverage that keeps you compliant while controlling costs.

Why Acting Now Matters

Audits, penalties, and compliance issues can add up quickly if your workers are misclassified. Every payroll cycle that goes by under the wrong codes increases your financial risk. By securing the right workers’ comp coverage today, you protect your employees, your contracts, and your business.

NPN Brokers is here to simplify the process, get you a quote in minutes, and provide coverage in as little as 24 hours. Whether your oil and gas business is drilling, servicing, or constructing pipelines, we can make sure you are properly classified and fully covered.

Get the Right Coverage for Your Oil and Gas Business

Workers’ comp class codes in the oil and gas industry can feel complicated, but they do not have to leave you overpaying or underinsured. By working with NPN Brokers, you gain a partner who understands your industry and has the carrier relationships to secure the coverage you need quickly.

If you want to ensure your oil and gas business has the correct class codes and affordable workers’ comp coverage, give us a call today at (561) 990-3022 or fill out our online quote request form. We can provide a quote in minutes and coverage in as little as 24 hours.