What is Georgia’s Governing Class Code for Workers’ Comp?
Understanding Georgia’s governing class code can give employers better insight into what their Workers’ Compensation premiums might be. Class codes come with rates, which help determine the cost of insurance.
Class codes for companies in Georgia are decided by the National Council on Compensation Insurance (NCCI). Class codes are given a rating, which then helps insurance carriers make informed calculations regarding monthly premiums. In addition to class codes, a company’s experience modification factor is evaluated to determine the cost of Workers’ Compensation insurance in Georgia. Suppose your class code informs a carrier that you are in a high-risk industry. In that case, you can keep costs low by introducing safety measures to employees and finding a more flexible policy, like pay-as-you-go Workers’ Compensation coverage in Georgia.
To learn your company’s class code and get a quote from our Georgia small business workers’ compensation insurance brokers today, call NPN Brokers at (866) 340-9120.
What Are the Governing Class Codes for Workers’ Comp in Georgia?
Georgia, like many states, uses class codes from the National Council on Compensation Insurance to classify companies and their employee operations. A company’s class code will most likely impact it when searching for insurance in Georgia.
The National Council on Compensation Insurance pools information from many states to determine classifications based on the specific type of work performed by certain employees. Each class code is assigned a rating, which helps carriers set Workers’ Compensation premiums in Georgia when applied to a company’s payroll information.
There are hundreds of class codes for various types of work. These codes are specific, and employers can use them to help determine their specific industry and what their Workers’ Compensation premiums might be in Georgia.
How Do Class Codes Determine Workers’ Comp Costs in Georgia?
While class codes are important when determining the cost of Workers’ Compensation premiums, they are not the only factor to consider. This means that if the rate assigned to your class code is high, you still might be able to find affordable coverage in Georgia.
The rate corresponding to your company’s NCCI class code in Georgia is applied to its payroll information. This will give you the base amount you will likely pay for Workers’ Compensation insurance in Georgia. Then, a Workers’ Compensation insurance carrier will consider other factors that can increase your risk to insure. These include your history of workplace accidents and the age of your company. Together, these factors make up your company’s experience modification factor.
Companies with many prior workplace accidents will typically have higher Workers’ Compensation premiums, even if the base rate determined by their NCCI class code is low. For example, if you own a retail store, your base premiums might not be expensive. But, if your retail store has had many employees file Workers’ Compensation claims in recent years, its premiums might be higher than a company in a more traditionally dangerous industry.
Newer companies might also have a higher experience modification factor, as they haven’t had time to create data regarding workplace safety and work-related accidents for carriers to review in Georgia. This could result in more expensive premiums, which could go down as your company is given time to show that it maintains a safe working environment for employees in Georgia.
What is Your Georgia Company’s Class Code for Workers’ Comp?
Properly classifying your company according to NCCI class codes is important so that you provide your carrier with the proper information and don’t end up pay too much for Workers’ Compensation when unnecessary in Georgia.
You can learn your company’s class code by contacting the Georgia State Board of Workers’ Compensation or the National Council on Compensation Insurance directly. When applying for Workers’ Compensation coverage, you need to provide your correct class code and other company information so that a carrier can begin calculating premiums.
Class codes are very specific. This means that if your company has changed directions recently or your employees are engaging in different activities, its class code might have changed as well. If this is the case, you must inform the State Board of Workers’ Compensation and your insurance carrier of a change in your NCCI class code in Georgia.
What if the Rate Assigned to Your Company’s Workers’ Comp Class Code is Too High in Georgia?
After learning their company’s NCCI class code and its corresponding rate, employers in Georgia might fear that their Workers’ Compensation insurance will be too expensive. Fortunately, there are Workers’ Compensation carriers that will be willing to work with you to keep premiums low despite your NCCI class code in Georgia.
Keeping your company’s experience modification factor low is one way to reduce Workers’ Compensation premiums despite having a class code with a high rate in Georgia. Employers can do this by providing the necessary training to employees and maintaining proper oversight to reduce the risk of workplace accidents occurring.
Some companies, like those in dangerous industries or with high payrolls, might be unable to lower their experience modification factor substantially. In these instances, our Georgia Workers’ Compensation insurance brokers can pair you with a carrier that offers transparent and affordable policies to companies with class codes that indicate elevated risk.
Employers with ever-changing payrolls can also get pay-as-you-go insurance in Georgia. This type of policy can allow you to keep monthly premiums low and base them on real-time payroll numbers instead of annual estimates. Pay-as-you-go insurance can be ideal for companies with NCCI class codes that connote high risk in Georgia. You might also be able to get coverage from a carrier that doesn’t mandate deposits, audits, or deposits, allowing you to save in areas other than monthly premiums.
Call Our Brokers to Get Workers’ Comp in Georgia
Call the Georgia Workers’ Compensation insurance brokers for general contractors at (866) 340-9120 to get a policy quote from NPN Brokers within a day.
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