Workers' Compensation Insurance for Therapists: A Complete Guide

What are Class Codes and why do they matter?

Insurance class codes are four-digit numbers that reference specific job roles. These codes are assigned by the National Council on Compensation Insurance (NCCI), which determines how often injuries occur in each job role. This data is then used by insurance companies to calculate workers' comp rates for therapists.

Class codes for workers' compensation insurance for therapists help ensure that therapists' practices are appropriately covered and that premiums reflect the actual risks associated with the profession.

How are class codes determined for therapists?

Class codes for therapists, including physical, occupational, and mental health therapists, are classified under the same code as other medical practices, such as doctor's offices and clinics.

The National Council on Compensation Insurance (NCCI) uses data from the healthcare sector to determine the risk levels for these roles. The NCCI reviews this data annually to make sure the class code and its corresponding risk rating reflect current trends in the industry.

Class Code for Therapists

Class Code 8832

Therapists, including physical, occupational, and mental health therapists, are typically classified under the same code as other medical practices like doctors' offices and clinics.

Kickstand Note:

Therapists who primarily work in clients’ homes may need to be classified under Class Code 8835, which is used for home health care providers. This is important because home visits present different risks, and the classification ensures that therapists working outside of a clinic are properly covered.

State-Specific Class Codes for Therapists

Therapists, such as physical, occupational, and mental health counselors, are classified under a common medical practice code in certain states.
Here is an example for therapy practices:

Class Code 0957 - Pennsylvania and Delaware

In both Pennsylvania and Delaware, therapy practices fall under Class Code 0957, which is the same classification used for all medical professionals, including doctors and office staff in medical clinics.

How do Therapist Class Codes affect insurance rates?

Class codes are essential for determining the workers' comp premium. These codes reflect the risk of an industry, and the more hazardous the job, the higher the premium.

For therapists, the average cost for workers' comp insurance is $0.27 per $100 of payroll. Since therapists generally work in controlled office environments, the risk is lower compared to more physically demanding industries. Rates from selected states are shown in the chart below.

Therapists (Class Code 8832) Rates per State – 2025

These starting rates are based on the general risk in the therapy industry. Your actual premium will depend on your practice's specific risks.

Insurance companies adjust your premiums using an experience modifier (ExMod), which is calculated based on your claims history.

If your ExMod is 0.95, your premiums will be lower than the average for similar practices. If your ExMod exceeds 1, your premiums will be higher due to previous claims.

Keeping a safe environment and reducing accidents can help keep your ExMod low and save on costs.

Want to know how these rates affect your practice’s costs? Check out our Guide to Workers' Compensation Insurance for Therapists Cost for more details.

Managing Risk with a strong Safety Program

Therapists, including physical, occupational, and mental health professionals, face specific risks related to patient handling and providing treatments. A safety program helps reduce injuries and control workers' comp costs.

Tips for reducing common injuries in Therapy Practices:

• Ergonomics in Treatment: Encourage therapists to use ergonomic furniture and equipment during treatments to minimize strain and repetitive motion injuries.
• Lifting Techniques: Ensure proper training for lifting patients and assistive devices to reduce back and shoulder injuries.
• Sanitation and PPE: Given the physical interaction with patients, ensure therapists have access to proper PPE, such as gloves and masks, and maintain a clean and safe environment to prevent exposure to pathogens.

Find the right Workers’ Comp for your Business

Looking for the right workers' comp coverage for your therapy practice? Start an instant quote now or reach us at 886-338-8823 for personalized support. We specialize in providing workers' comp for therapy practices and can help you find the best coverage.