Janitorial Services Workers’ Compensation Class Codes: A Guide
Workers’ compensation insurance for janitorial and cleaning companies covers medical bills and lost wages if employees get hurt or sick from their job. Understanding the different janitorial services workers’ comp class codes ensures that your business is covered adequately and avoids any surprises when it comes to your insurance rates.
What are Class Codes and why are they important?
As a janitorial company owner or manager, you’ve likely come across the term "class codes" when dealing with workers' compensation insurance.
Class codes are four-digit numbers assigned to various job roles, industries, and business types.
Think of class codes like barcodes that provide quick references for specific job roles.
These codes are created and maintained by the National Council on Compensation Insurance (NCCI).
In janitorial workers' compensation insurance, class codes serve several purposes:
- 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 play a key role in determining your insurance costs
How are Class Codes determined?
Each class code has 3 parts which the NCCI manages.
- Four-digit Class Code: A unique number assigned to specific job roles
- Description: Details about the job role covered by the class code
- Risk Rate: A number representing the likelihood of injuries or illnesses for that job
The risk rate is important because it helps insurance companies decide how risky it is to cover a specific job, which then affects how much your insurance will cost. While the class code and description usually stay the same, the risk rate can change every year.
The NCCI looks at injury data from each industry in different states to update the risk rates. If there are more injuries in a year, the risk rate might go up, and if there are fewer injuries, it might go down.
Common Class Codes for Janitorial Employees
Most states use one of these five class codes for janitorial employees:
Class Code 9014
This is the primary code for commercial cleaning, covering a wide range of services. It includes standard commercial cleaning (as long as more than 50% of the work done is commercial), post-construction cleaning without debris removal, vacation rental cleaning, swimming pool maintenance, chimney cleaning, power or pressure washing, spraying lawns for pesticides, and more.
Kickstand Note:
If a cleaner works in a residential house but is part of a commercial company (e.g., cleaning for Airbnb), it's considered commercial. Tasks like move-in/move-out cleanings, short-term rentals, or final post-construction cleanings also fall under 9014, even if done in residential homes.
Class Code 0917
This code is for typical residential cleaning, provided more than 50% of the work done is residential.
Class Code 9170
This code is for window cleaning services above ground level.
Class Code 9403
This covers junk removal services.
Class Code 5610
This is for post-construction cleaning that includes debris removal.
State-Specific Janitorial Class Codes
Some states use different class codes than the standard ones recommended by the NCCI. Here are a few examples.
Class Code 9014 - Texas
In Texas, this code is used for all residential and commercial cleaning, with no distinction between the two.
Class Code 9030 - New York
New York uses this code for all janitorial services by contractors, without splitting between residential and commercial cleaning.
Class Code 9008 - California
In California, this code is used for janitorial services.
Class Code 9096 - California
Also in California, this code is specifically for residential cleaning.
Class Code 9015 - Michigan
Michigan uses this code for all janitorial services.
Class Code 971 - Pennsylvania and Delaware
This code is used for all commercial cleaners in Pennsylvania and Delaware.
Class Code 882 - Pennsylvania and Delaware
This code is used for all residential cleaners in Pennsylvania and Delaware.
Disclaimer: These are general class codes—there may be more specific ones for certain operations.
Non-Industry Class Codes
Janitorial companies can use different codes for employees in non-industry-specific roles to save on workers’ comp costs. For example, you can use Class Code 8810 for finance/bookkeeper roles, which typically have lower rates than janitorial industry codes.
How do Class Codes affect Insurance Rates?
Class codes show how risky a particular job is. Insurance companies use these codes to figure out the cost of a workers' compensation policy. Jobs with higher risks will have more expensive policies to cover potential injuries.
For example:
- Class Code 9014 (commercial cleaning) is usually cheaper because it involves lower-risk office environments.
- Class Code 0917 (residential cleaning) is more expensive due to the unpredictable nature of house cleaning.
- Class Code 9170 (above ground window cleaning) is even more costly because of the high risk involved.
To understand how these rates vary, look at the workers' compensation rates for different class codes in various states. Each state has its own rates based on unique risks and rules. The charts below show the differences in rates for Class Codes 9014, 0917, 9170, 9403, and 5610.
Commercial Cleaning (class code 9014) Rates per State 2024
The average workers' compensation rate for Class Code 9014 is $2.43
Residential Cleaning (class code 0917) Rates per State 2024
The average workers' compensation rate for Class Code 0917 is $3.31
Post-construction Cleaning (class code 5610) Rates per State 2024
The average workers' compensation rate for Class Code 5610 is $5.03
Junk Removal (class code 9403) Rates per State 2024
The average workers' compensation rate for Class Code 9403 is $7.72
Window Cleaning above Ground (class code 9170) Rates per State 2024
The average workers' compensation rate for Class Code 9170 is $8.69
Curious about how these rates translate into costs for your business? Check out this Guide to Janitorial Workers’ Comp Rates.
Tips to ensure your Class Codes are correct
To make sure your cleaning company has the right insurance coverage, it's important to classify your employees accurately based on their specific job duties. Wrong class codes can lead to underinsurance and put your business at risk if a claim is made.
Keep in mind that your workers' comp class codes will be reviewed during your annual audit.
Here are some simple tips to help:
- Check job duties: Regularly review what each employee does and assign the correct class code for their role.
- Stay updated: Stay informed about changes to class codes for janitorial businesses, as they can change over time.
- Consult your insurance agent: Work closely with your insurance agent to make sure that the class codes are right and avoid penalties for mistakes.
Get the right Coverage with accurate Class Codes
If you have any questions about which class code your business should use, get an instant quote to start a conversation with an agent or call us at 886-338-8823.
We specialize in providing workers’ compensation to janitorial and cleaning companies and can help you get the coverage you need to protect your business and employees.
Note: The information provided in this blog is intended for general informational purposes only and is not a substitute for professional legal or insurance advice. Laws and regulations regarding workers' compensation insurance are complex and vary by state and by specific circumstances. Therefore, readers are encouraged to consult with a qualified legal or insurance professional to obtain advice with respect to any particular issue or problem they might have.
Mordechai Kamenetsky, co-founder and lead agent of Kickstand, is recognized as an expert in workers' compensation. He is passionate about helping small businesses manage risks and lower their workers' comp costs. In his articles, he educates readers and clients on the intricacies of workers' comp insurance.
As a small business owner, you can get cheap workers' comp insurance by correctly classifying your workers and lowering your experience modification rate. These strategies, among others, can lead to significant savings. Learn how to reduce your workers' comp costs while still protecting your business.
