Common Workers’ Comp Class Codes for Industrial Staffing Agencies

Staffing agencies that supply workers to industrial environments face unique obstacles when it comes to securing workers’ compensation insurance. While office-based staffing firms usually fall into lower-risk categories, industrial staffing companies place employees into positions that involve heavy machinery, repetitive physical labor, and hazardous job sites. This naturally raises the likelihood of workplace injuries, which in turn makes it harder to obtain reliable and affordable workers’ comp coverage.

One of the main reasons this process is so difficult is the role that workers’ comp class codes play in how insurers assess risk. Every job type is assigned a specific code that reflects the risk level of the work. For industrial staffing agencies, many of these codes fall into high-risk categories. That means premiums are higher, carriers are more reluctant to extend coverage, and agencies often struggle to find policies that allow them to operate smoothly.

At NPN Brokers, we work directly with staffing firms in high-risk industries to secure workers’ comp coverage. Our programs are designed for agencies that traditional insurance carriers often turn away. Because we specialize in challenging industries, we understand the risks and complexities of industrial staffing, and we have relationships with carriers that allow us to get coverage in place quickly. In fact, many agencies receive quotes within minutes and can secure active coverage in as little as 24 hours.

In this article, we will look closely at the most common workers’ comp class codes for industrial staffing agencies, explain why these codes matter, and show how NPN Brokers helps staffing agencies overcome the barriers that traditional insurers put in place.

Why Workers’ Comp Coverage Is Challenging for Industrial Staffing Agencies

Industrial staffing agencies face a long list of challenges when seeking workers’ compensation coverage. The first is the high-risk nature of the work itself. Industrial workers may be tasked with loading and unloading heavy materials, operating forklifts, assembling products in machine shops, or performing physically demanding labor in warehouses or distribution centers. Each of these tasks carries a significant risk of injury, which makes insurance carriers cautious about offering policies.

Another challenge comes from environmental hazards. Many industrial job sites involve exposure to noise, chemicals, dust, or extreme temperatures. Workers placed in cold storage facilities, for example, face risks from prolonged exposure to freezing conditions. Those working in machine shops may face risks tied to sharp equipment, fast-moving machinery, or repetitive strain injuries. These environments increase the likelihood of claims, and as a result, insurers either deny coverage or set premiums so high that it becomes unaffordable for staffing firms.

There is also the issue of temporary labor. By nature, staffing agencies employ workers who may only stay on assignment for a short time. This can mean limited training and less familiarity with safety protocols. From an insurer’s perspective, this increases the chance of workplace accidents. Traditional carriers prefer stable, long-term employees, so agencies that constantly rotate staff face another barrier to securing coverage.

Finally, industrial staffing agencies often need to classify employees under several different workers’ comp class codes. One client may need warehouse workers, another may need machinists, and yet another may need drivers. Each of these roles requires its own class code, and managing multiple codes can create confusion, higher premiums, and additional administrative burdens. Many carriers prefer to insure companies with only one or two codes, but that is rarely realistic in staffing.

For all of these reasons, staffing agencies often find themselves without viable coverage options. That is where NPN Brokers steps in. We provide flexible, straightforward programs that are tailored to high-risk industries like industrial staffing.

Common Workers’ Comp Class Codes for Industrial Staffing

Understanding which workers’ comp class codes apply to your agency is essential. These codes not only determine how your premiums are calculated but also affect your ability to secure coverage at all. Below are some of the most common class codes that industrial staffing agencies deal with and the challenges tied to each.

Class Code 8018 – Stores: Wholesale NOC

This code is used for employees working in wholesale warehouses or distribution centers. It applies broadly to workers handling packaging, preparing goods for shipment, or moving inventory.

The risks here include lifting injuries, repetitive stress from constant handling, forklift accidents, and slips or falls in busy warehouses. Because of the repetitive and physically demanding nature of the work, claims are common. Insurers are cautious about offering affordable coverage for staffing agencies with a large portion of payroll in this code.

Class Code 8292 – Storage Warehouse: Cold

Cold storage facilities present an added layer of risk for employees. Workers may spend long hours in refrigerated or freezer conditions while moving and organizing perishable goods.

The risks include cold-related health issues, slips on icy surfaces, and strain injuries from repetitive lifting. Insurers see these roles as higher risk than standard warehouse positions, which makes securing coverage even more challenging for staffing firms placing employees in these environments.

Class Code 3632 – Machine Shops NOC

Machine shop employees are a common placement for staffing firms, particularly in light manufacturing. Workers may operate drills, presses, or other machinery to assemble or fabricate parts.

The risks include cuts, crush injuries, repetitive stress injuries, and hearing loss from prolonged exposure to machine noise. The temporary nature of staffing assignments can make insurers hesitant, since employees may not have the same safety training as permanent hires. This makes machine shop staffing one of the tougher categories to insure.

Class Code 8017 – Stores: Retail NOC

While often less risky than heavy industrial codes, retail warehouse and distribution roles fall under this category. These employees are typically responsible for stocking, organizing inventory, and using equipment to move products.

Risks include lifting injuries, falls from ladders, and minor equipment accidents. Though not as high risk as machine shops or cold storage, insurers still monitor claim frequency in this code closely, especially when workers are temporary.

Class Code 8380 – Automobile Service and Repair Centers

This code covers staffing placements in auto service shops or manufacturing plants tied to vehicle repair. Employees in this category often use tools, handle vehicle parts, and are exposed to chemicals.

Risks include cuts, strains from lifting heavy parts, chemical exposure, and burns. Because of the variety of risks in auto repair, carriers often treat this code as high risk, making it difficult for staffing agencies to obtain affordable policies.

Class Code 5506 – Street or Road Construction

Some staffing firms place workers into construction-adjacent roles. These can include material movers, traffic control personnel, or general laborers working in road construction.

The risks include exposure to traffic, heavy equipment, outdoor working conditions, and falls. Construction staffing is among the hardest categories to insure, and many carriers decline this class code altogether.

Class Code 8227 – Construction or Erection Permanent Yards

This code applies to workers in yards where construction materials are fabricated, stored, or prepared for job sites. Employees may handle heavy materials and operate forklifts or other machinery.

The risks include crush injuries, lifting accidents, and equipment mishaps. Carriers view these roles as high risk due to the physical demands and the potential for serious injury.

Class Code 7380 – Drivers, Chauffeurs, Messengers, and Helpers NOC

Staffing agencies often provide drivers for delivery or transportation roles. This code applies to those employees.

Risks include vehicle accidents, lifting injuries while loading and unloading, and repetitive strain injuries. Because of the high risk of auto-related claims, insurers are especially cautious with this category.

Class Code 5645 – Carpentry for Detached Homes

Staffing agencies that provide carpenters for residential construction fall under this code. Workers may build, frame, or perform other tasks on one- or two-family dwellings.

Risks include injuries from power tools, falls from heights, and strain injuries from lifting heavy materials. This code is among the more challenging for staffing agencies, as construction-related work has one of the highest risk profiles.

Why Class Codes Matter So Much

Workers’ comp class codes are more than just labels. They directly influence your premium and your ability to operate legally. Each code has a rate per $100 of payroll, and the higher the risk, the higher the rate. For staffing agencies, which may use several codes at once, managing classification properly is essential.

If employees are misclassified, agencies may face penalties, audits, or even denied claims. For example, if warehouse workers are misclassified under a less risky code, insurers may retroactively increase premiums or refuse to honor claims. This creates serious financial and operational problems for staffing firms.

At NPN Brokers, we work with staffing agencies to ensure that class codes are reported accurately and that coverage is secured without the constant fear of audits or disputes. Our Pay-As-You-Go programs calculate premiums based on actual payroll, which allows agencies to scale placements across multiple codes without being penalized.

How NPN Brokers Helps Industrial Staffing Agencies

NPN Brokers has built a reputation for helping staffing agencies secure workers’ comp coverage when traditional insurers have turned them away. Our approach is designed for the realities of staffing and focuses on simplicity, flexibility, and speed.

We provide fast coverage, even for high-risk codes that many carriers avoid. In many cases, we can provide a quote in minutes and activate coverage within 24 hours. This speed allows agencies to continue placing workers without delays that disrupt operations.

Our programs are built without contracts, audits, or large upfront deposits. This means agencies can pay only for the payroll they process, making cash flow more predictable and eliminating the stress of annual audits.

We also provide nationwide coverage for agencies that place workers across state lines. Multi-state staffing agencies often face even greater challenges in finding workers’ comp, but with our programs, you can cover all of your employees under one policy.

Most importantly, we specialize in high-risk industries. While many insurers shy away from staffing agencies that place workers in warehouses, machine shops, cold storage facilities, or construction-related roles, we embrace these challenges. Our experience and carrier relationships allow us to create solutions where others cannot.

Get the Coverage You Need Today

Running an industrial staffing agency is already demanding. You should not have to worry about whether your workers’ comp coverage will be denied, overpriced, or impossible to secure. By working with NPN Brokers, you can simplify the process and focus on growing your agency.

If you would like to receive a workers’ compensation insurance quote for your staffing agency, give us a call today at (561) 990-3022 or fill out our online quote request form. We will provide you with a competitive quote in minutes and help you secure coverage in as little as 24 hours.