A Guide to Workers' Compensation Class Code for Consultants

What are Class Codes and why do they matter?

Workers’ comp class codes are four-digit identifiers assigned by the National Council on Compensation Insurance (NCCI) or state-specific agencies. These codes categorize employees based on the type of work they perform and the level of risk associated with their duties. 

Insurance companies use the class codes and associated information to calculate your insurance premiums.

Using the correct class codes is essential for two reasons:

1. Accurate Premiums: Proper classification ensures you pay fair rates without overpaying for low-risk employees.
2. Comprehensive Coverage: Misclassification can lead to coverage gaps, leaving your business exposed if an employee is injured.

For consulting businesses workers’ comp, precise classification is especially important, as the range of roles and tasks can vary. 

Common Workers’ Comp Class Codes for Consultants 

Code 8810 – Clerical and Professional Consultants

This is the most common code for consultants. It’s a “catch-all” code for office-based professionals whose roles are not otherwise classified. 

It applies to consultants in industries like:

• Accounting and finance
• Business coaching
• Marketing
• Human resources
• IT and tech support
• Engineering

Because 8810 covers roles with minimal physical risk, it typically has one of the lowest workers’ comp rates. If your consulting business operates with employees strictly performing clerical or advisory tasks, this code is likely the right fit.

Code 8720 – Insurance Inspectors and Claims Adjusters

This code is used for consultants who perform inspections, evaluations, or risk assessments that involve some physical exposure. 

Examples include:

• Insurance inspectors
• Claims adjusters
• Safety consultants conducting on-site evaluations
• Risk assessors

These roles often involve fieldwork, such as climbing ladders or inspecting job sites, which slightly increases their risk profile.

Class Code 8723 – Insurance Company Employees

This code is designated for employees working within insurance companies. It often includes roles like underwriters, claims processors, or administrative staff. 

However, some insurance businesses mistakenly classify office-based roles under Code 8810 instead of 8723. While Code 8810 covers clerical employees broadly, it doesn't reflect the specific nature of tasks tied to insurance operations. 

Class Code 8721 – Real Estate Appraisal Company

This code applies to professionals conducting real estate appraisals, often involving site visits to evaluate properties.

Class Code 8820 – Attorney’s Office

Primarily for employees working in law firms, this code covers administrative and professional tasks performed in office environments.

Class Code 8855 – Banks and Trust Companies

Designed for banking and trust company employees, this code encompasses a variety of roles within financial institutions.

Class Code 8871 – Remote Employees

Introduced during the pandemic, this newer code is specifically for employees working entirely remotely. While less common now, it remains relevant for consultants who work exclusively from home.

State-Specific Classifications

Some states use their own workers’ comp codes instead of NCCI classifications. For example, consultants in Pennsylvania and Delaware are often classified under Code 0953, which encompasses a wide range of professional roles.

How do Workers' Comp Class Codes affect Insurance Rates?

The workers' comp class codes you use play a significant role in determining your insurance premiums. For consulting businesses, the difference between clerical roles under Code 8810 and fieldwork-related roles under Code 8720 illustrates how risk levels impact costs.

• Code 8810 is typically assigned to office-based consultants with minimal physical risks, resulting in some of the lowest workers’ comp rates. On average, businesses classified under Code 8810 pay $0.11 per $100 of payroll.
• Code 8720 applies to roles like claims adjusters and insurance inspectors who may conduct site visits or physical inspections, which introduces more risk and slightly higher premiums. On average, businesses classified under Code 8720 pay $0.99 per $100 of payroll.

Below are visual comparisons of the average workers' comp rates for these two codes across various states:

Average Workers’ Comp Rates for Clerical Class Code 8810

Average Workers’ Comp Rates for Claims Adjustor Code 8720 

Curious about how these rates translate into costs for your business? Check out this Guide to Workers’ Compensation Insurance for Consultants Cost. 

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Tips for Preventing Injuries in Consulting Businesses 

Even consulting businesses face risks. A proactive approach to safety can help keep your premiums low and your employees protected.

• Promote Ergonomics – Provide ergonomic furniture and equipment to prevent repetitive motion injuries. Encourage employees to take regular breaks and report discomfort early.
• Enhance Workplace Safety – Keep walkways clear of cords and clutter, secure rugs, and replace burned-out lightbulbs to minimize slip-and-fall risks.
• Use Technology – For fieldwork roles like safety consultants or claims adjusters, consider using drones for inspections. This reduces manual exposure and limits risk.

Find the right Workers’ Comp Rates for your Business

Want to know how much workers’ comp insurance will cost for your consulting business? Use our online tool to get a tailored quote and see how much you can save!