Work Comp Class Code for Trucking: A Guide

What are Class Codes and why are they important?

If you own or manage a trucking business, you’ve likely heard of "class codes" when dealing with workers' compensation insurance for truckers or owner operators. These four-digit codes are assigned to different job roles and industries by the National Council on Compensation Insurance (NCCI), which standardizes workers' comp classifications across most states.

Here’s why they matter:

Class codes help insurance companies:

• Understand your business: They group employees based on their job roles and tasks.
• Estimate risk: They assess the likelihood of injuries or claims for each classification.
• Set insurance rates: They calculate premiums based on the risk level associated with each code.

How are Class Codes determined?

Class codes have three key components:

1. Four-digit Code: A unique identifier for the role or industry.
2. Job Description: A detailed description of the tasks covered under the code.
3. Risk Rate: A number representing the likelihood of injury or illness associated with that code.

The risk rate, set by the NCCI, is updated annually based on reported workplace injuries. This means your premium rates may fluctuate over time, depending on industry trends.

Common Class Codes for Trucking Companies

Here are the most frequently used class codes for trucking businesses: 

Class Code 7219 – Local and Long Distance Trucking 

This code applies to most trucking operations, including:

• General freight transport
• Sand and gravel hauling
• Snow removal
• Dump truck operators
• Mobile home delivery
• Ready-mix operations (if the owner doesn’t own the materials being hauled)

Employees in this category typically include drivers, terminal workers, and mechanics.

Class Code 7230 – Parcel or Package Delivery

Used for trucking companies that transport packages between retail stores or directly to customers. Businesses using this code must exclusively provide parcel delivery services without general freight hauling.

Class Code 7231 – Local Mail, Parcel, or Package Delivery

This code applies to businesses delivering small packages locally under contracts with private enterprises like UPS, FedEx, or Amazon.

Class Code 7232 – Trucking Under Contract with the U.S. Postal Service

Reserved for trucking companies contracted with the USPS. This includes inter- and intra-state mail hauling and delivery services using both large trucks and small vehicles.

State-Specific Trucking Class Codes

While most states follow NCCI guidelines, there are some exceptions. 

Virginia is one exception. In 2018, NCCI consolidated local and long-haul trucking into a single class code (7219) for most states, but Virginia retained separate classifications:

• Class Code 7228: Local Hauling Only (VA only).
• Class Code 7229: Long Distance Hauling (VA only).

Non-Industry Class Codes

Non-driving roles in a trucking business, like dispatchers, can sometimes use class codes that are not specific to trucking.

• Class Code 8810: Applies to clerical workers who are 100% office-based. However, if they drive even occasionally, they must be classified under 7219, which is more expensive.

How do Class Codes affect Insurance Rates?

Class codes determine your workers' comp premiums. Jobs with higher risks have higher premiums to cover potential injuries.

For example, Class Code 7219, designated for general trucking operations, has an average workers' compensation rate of $6.33 per $100 of payroll.

In contrast, Class Code 7231—applicable to businesses delivering small packages locally under contracts with private enterprises like UPS, FedEx, or Amazon—carries a higher average rate of $8.11 per $100 of payroll.

The increased rate of Class Code 7231 reflects the elevated risks associated with local delivery services due to frequent stops, loading and unloading heavy packages, and constant navigation through local traffic. (Underwriters often inquire about the maximum weight of parcels handled, as heavier packages can increase the risk of strain or injury.)

In contrast, long-haul truckers, Class Code 7219, primarily operate on highways and often do not handle loading or unloading, resulting in lower risk and, consequently, lower insurance rates.

Curious about how rates translate into costs for your business? Check out our Guide to Workers’ Comp Rates for Truckers 2025 for more details. 

Tips to ensure your Class Codes are correct

Using the right class codes ensures your business is adequately protected while avoiding overpaying for insurance. Here are some tips:

1. Review Job Duties: Accurately classify each employee based on their role.
2. Stay Updated: Monitor changes in class codes and risk rates annually.
3. Work with Your Agent: Collaborate with an experienced agent to ensure proper classification and avoid penalties during audits.

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Get the right Coverage with accurate Class Codes

Accurate classification is crucial for obtaining the right coverage and managing your workers' comp costs effectively. Misclassification can result in higher premiums or insufficient coverage, putting your trucking business at risk.

Need help determining the right class codes for your trucking business? Start an instant quote today or contact us at 886-338-8823. At Kickstand Insurance, we specialize in providing workers' comp coverage tailored to trucking businesses, including owner-operators.