Property Management Workers’ Compensation Class Codes: A Guide

What is a Workers’ Compensation Class Code?

Before we dive too deep into what you need to know about the workers’ compensation class code for property management, we need to establish what class codes are. 

There is a big publicly accessible list that assigns a 4-digit number called a class code to every job role. Think of it like a barcode that can be used to differentiate between similar roles and easily reference information related to the code.

Each code is also assigned a risk rating that represents the likelihood of someone getting hurt. The risk rating will be different for each industry and each state.

The National Council on Compensation Insurance (NCCI) is responsible for creating and maintaining all workers’ comp class codes. 

How are Workers’ Compensation Class Codes determined?

The NCCI looks at injury statistics for each job role in every state to calculate the risk rate for workers’ compensation class codes. They use this data to update each risk code once a year. 

With more injuries, the risk rate climbs. With fewer injuries, the risk rate declines. Accident and injury numbers fluctuate each year due to a wide range of factors, including:

• The number of people involved in each role in every state
• Improvements in available safety technology and equipment
• Changes within the duties of a specific role 

Property Management Workers’ Compensation Class Codes

There are two main workers’ comp class codes for property managers. These are 9015 and 9012. The 9015 code is used for maintenance roles, while the 9012 workers’ comp code is used for clerical roles. 

Here’s what you need to know to use these codes effectively. 

9015 Workers’ Comp Code

The property management workers’ compensation class code for property managers who engage in maintenance-related work is 9015.

Be careful! Code 9015 is “light maintenance”. This can include things like changing light bulbs and handling other light maintenance items for tenants. This code is NOT applicable for tasks better suited to a handyman or a contractor, such as plumbing or electrical work. 

9012 Workers’ Comp Code

The property management workers’ compensation class code for clerical roles (leasing agents, for instance) is 9012. However, many companies try to use code 8810, instead. 

This is a mistake. Yes, 8810 does refer to clerical roles. The issue is that it doesn’t apply to property management companies, so trying to use it can have negative effects on your workers’ compensation coverage. 

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Kickstand Note

Most property managers don’t do just one thing. The majority handle both clerical work and light maintenance. So, you’ll want to make sure that your company has both codes mentioned just to cover all the bases. Not doing so can cause problems. 

For example, if you classify a property manager as class code 9012 and then they're hit by broken glass while changing a lightbulb, your workers’ compensation policy likely won’t cover the injury. This leaves the employee without protection but also leaves your business open to lawsuits.

The 9015 Workers’ Comp Code Conundrum

Chances are high that your property management company has a mission to help property owners “set it and forget it” when it comes to property maintenance. 

How can you make that mission dovetail with the “light maintenance only” requirement of Class Code 9015? 

You can’t. 

The smartest business decision is to refer property owners to outside professionals. This is the path the most successful property management companies take. 

For example, if the property needs electrical repairs, you could refer them to a trusted electrician in the area. This would solve the property owner’s problem while also making sure that you stay within the boundaries of what’s required by your workers’ compensation coverage. 

What if you decide to hire subcontractors? Would this help your owner relax and forget about maintenance-related worries? Yes, it would. However, you must go about it the right way or you could find yourself in a risk position. 

If you choose to hire subcontractors so that owners can focus on other things, here’s what you must do every time:

• Hire only reputable, licensed professionals to handle the work
• Make sure that every subcontractor has their own Certificate of Insurance (COI)
• If the contractor cannot show their COI, do not hire them

A COI proves that the subcontractor has their own workers’ comp insurance. If they don’t, you’re on the hook if they’re injured on the job. That applies whether they’re doing electrical work, installing a new toilet, or putting up a ceiling fan. 

If you do decide to hire subcontractors, always insist on seeing proof of insurance before hiring. 

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How does a Property Management Class Code affect Insurance Rates?

As mentioned, class codes describe the inherent risk within a particular job role. Insurance companies use class codes to determine the cost of a workers’ compensation policy. Riskier jobs will increase the cost of a policy. 

For example:

• Class Code 9015 is usually more expensive because of the increased risk introduced by handling light maintenance.
  

• Class Code 9012 (clerical) is usually cheaper because there’s less risk of injury.

Below, we’ve broken down the average rates for each property management workers’ compensation class code for 2024.

Property Management Light Maintenance (class code 9015) Rates per State 2024

The national average workers’ compensation rate for Class Code 9015 for 2024 is $2.48.

Property Management Clerical (class code 9012) Rates per State 2024

The national average workers’ compensation rate for Class Code 9012 for 2024 is $0.77.

Curious about how these rates translate into costs for your business? Check out this Guide to Property Management Workers’ Comp Rates. 

Ensure your Class Codes are accurate

Given the impact class codes have on your workers’ compensation costs, it pays to ensure they’re as accurate as possible. 

Here are three critical steps to do just that:

1. Delve into job duties: First, make sure that you know what each individual within your property management company does daily. This may require formalizing job descriptions if you haven’t already. Next, assign the right class code to each employee based on those responsibilities.

2. Keep up to date: Employees' job roles and specific responsibilities change over time. Stay up to date on them as they evolve.

3. Talk to your Agent: Work with your insurance agent to ensure that everyone has the right classification so you can avoid overpaying for your workers’ compensation policy.

Case Study

See how Kickstand reduced a property manager’s workers’ comp costs by 60% by applying the right class codes. Read the case study here.

Get the right Coverage with the right Class Codes

Using the right property management workers’ compensation class code for each employee is important. Misclassifying your employees can lead to overpaying for workers’ comp insurance or leaving your employees without coverage. 

Not sure which workers’ compensation class code to use? We can help. Start an instant quote and connect with an experienced agent right now. You can also call 886-338-8823. We specialize in workers’ compensation for property management companies and will help ensure you get the right coverage.