We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What Are the Different Types of Workers' Compensation Codes?

By Sandi Johnson
Updated May 16, 2024
Our promise to you
MyLawQuestions is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At MyLawQuestions, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

In the United States, federal and state laws require certain employers to cover work-related injury for their employees via a workers’ compensation insurance policy. Such policies cover medical expenses and lost wages in the event an employee is injured on the job. When insurance companies assess premiums for workers’ compensation coverage, they use classification codes established by either the National Council on Compensation Insurance (NCCI) or their specific state’s classification system. When reporting workers’ compensation claims for injuries, employers must use statistical codes. Job classification codes and statistical codes for reporting are the two primary types of workers’ compensation codes.

The most common workers’ compensation codes are classification codes. These codes seek to provide an orderly method for grouping similar workforce tasks and risks to better determine appropriate insurance premiums. For example, the risk of injury to those involved in job duties relative to routine office work are considerably less than those job duties that involve operating heavy equipment. As such, the NCCI and state classification systems group like job duties or workplace environments into some 700 or more categories of similar job descriptions, environments, and risk factors.

When using the NCCI Scopes Manual, the industry standard for workers’ compensation codes, each classification of job descriptions uses a four digit numeric code to identify specific job roles and working conditions. As an example, the workers' compensation codes for an Electrician Assistant and electrical equipment installers are 3179 and 9516, respectively. Jobs involving building concrete culverts and bridges carry a classification code of 5222. Codes for specific jobs are assigned by insurance agents, NCCI officials, or underwriters and auditors for the insurance company when a company or organization first applies for a workers’ compensation insurance policy. Workers' comp class codes are then used to determine premiums based on foreseeable risk.

On the other side of workers' compensation codes are statistical codes used for reporting purposes. Also known as workers' compensation claim codes or workers' compensation injury codes, these codes provide specific information when filing a claim for benefits. When an employee is injured, the employer must submit documentation to their workers’ compensation insurance provider for payment. Such documentation includes what areas of the body suffered injury, where the injury occurred, and other pertinent information. To simplify the reporting process and ensure orderly data collection regarding workplace safety statistics, a uniform coding system is used.

Just as job classification codes provide uniformity in determining workers’ compensation insurance premiums, statistical reporting codes provide the NCCI and state advisory organizations the ability to summarize injury data. Collecting data on workplace injury statistics highlights when certain industries require additional regulation regarding safety practices or when additional education regarding workplace hazards might prove beneficial. Likewise, insurance companies can act on claims faster using short codes rather than written descriptions, which can often be subjective.

MyLawQuestions is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Discussion Comments
MyLawQuestions, in your inbox

Our latest articles, guides, and more, delivered daily.

MyLawQuestions, in your inbox

Our latest articles, guides, and more, delivered daily.