Electrician Workers’ Comp Code: A Guide

What are Class Codes?

If you're an electrician, you may have encountered the term "class codes" while dealing with workers' compensation insurance. Class codes are four-digit numbers that categorize different job roles, industries, and business types. 

Think of them as barcodes that make it easy to reference information related to specific job roles. These codes are managed and maintained by the National Council on Compensation Insurance (NCCI).

Class codes serve several important functions:

• Understanding your business: They categorize the various job roles within your company
• Estimating risk: They help assess the risk level associated with different job roles
• Setting insurance rates: They are used to determine your insurance costs

How are Class Codes determined?

Each class code has 3 components that the NCCI manages. 

1. Four-digit class code
2. Description of the class code 
3. Risk rate

The risk rate is a number that shows how likely it is for someone to get seriously hurt or sick from doing a particular job. Insurance companies use this number to decide how risky it is to insure that job and set the insurance cost.

Although the class code and its description stay the same, the risk rate can change every year. 

The NCCI looks at injury data from each industry in every state and adjusts the risk rate depending on whether there were more or fewer injuries than the previous years. This can make the risk rate go up or down.

Common Electrician Workers’ Comp Class Codes 

Most states use these 3 class codes for electrician workers’ comp: 

Class Code 5190

Code 5190 is the general code for most electricians unless a more specific code applies. It applies to both residential and commercial work. 

Services often include cable installation, electrical wiring within buildings, and commercial refrigeration cleaning and adjusting.

Class Code 7605

This code is for those who install burglar and fire alarms.

Class Code 9516

This code covers the installation, service, and repair of home theater equipment. It also includes installation, service and repair of other electronic equipment. 

Kickstand Tip: 

Don't confuse low voltage work with standard electrical work. Use Class Code 7600 for tasks like telecommunications, and interior internet wiring. This work is less risky, with common injuries being falls, cuts, and repetitive motions.

State-Specific Electrician Class Codes 

Some states use different class codes than the industry class codes recommended by the NCCI. 

Here are a few examples: 

Class Code 661 - Pennsylvania and Delaware

In Pennsylvania and Delaware, this code is used for all electricians and electrical contractors use this code, unless a more specific code is applicable.

Class Code 660 - Pennsylvania and Delaware

This code is used in Pennsylvania and Delaware for fire alarm installation. 

Class Code 2661 -  Pennsylvania and Delaware

In Pennsylvania and Delaware, this code is used by staffing companies that provide electrical contractors. The '2' before the code signifies it's a staffing company, with '661' indicating electrical work.

Non-Industry Class Codes

Electricians can use different codes for roles not specific to the industry to reduce workers' comp costs. For instance, you can use code 8810 for finance or bookkeeping positions. This typically has lower rates compared to electrician industry codes, saving you money.

For more tips on reducing your workers' comp costs for electricians, check out our guide.

How do Class Codes affect Insurance Rates?

Class codes show how risky a specific job is. Insurance companies use these codes to figure out the cost of workers' compensation policies. Jobs with higher risks come with more expensive policies because they cover potential injuries.

To understand how these rates differ, let's examine electrician workers' compensation rates for different class codes across various states. The charts below highlight the rates for Class Codes 5190, 7605, and 9516. Each state has its own rates based on their unique risks and regulations.

Electrical Contractor (Class Code 5190) Rates Per State 2024

The average workers' compensation rate for Class Code 5190 is $2.63.

Alarm Installation (Class Code 7605) Rates Per State 2024 

The average workers' compensation rate for Class Code 7605 is $1.95.

Home Theater Equipment (Class Code 9516) Rates Per State 2024 

The average workers' compensation rate for Class Code 9516 is $2.17.

Curious about how these rates translate into costs for your business? Check out the  Electrician’s Guide to Workers’ Comp Rates for more details. 

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Tips to ensure your Class Codes are correct

Ensuring your electricians have the right insurance coverage starts with correctly classifying your employees based on their job duties. If you misclassify them, you might end up underinsured and put your business at risk if a claim is made. 

Your workers' comp classification will be thoroughly checked during the annual audit, so it's important to get it right.

Here’s how to nail it:

• Review Job Duties: Get clear on what each employee does daily. Assign the correct class code to each role. This prevents costly mistakes.
• Stay Updated: Class codes for electricians can change, so keep up with any updates. This keeps your coverage accurate and avoids surprises.
• Partner with Your Insurance Agent: Your agent is your ally. Work closely with them to ensure everything is correctly classified and to avoid penalties.

Get the right Coverage with accurate Class Codes

Using the correct class codes ensures that your electricians have the right workers' compensation coverage. Misclassifying your employees can result in higher premiums or inadequate coverage, putting your business at risk.

If you're unsure which class code applies to your business, start an instant quote to connect with an agent, or call us at 886-338-8823. We specialize in workers’ compensation for electricians and can help you get the coverage you need to protect your business and employees.