Why Misclassifying Trucking Operations Costs Time and Money
Trucking and transportation businesses are a regular part of many agencies' workers' compensation books. But the classification system for these operations is nuanced — and missteps in code selection lead to mispricing. The problem is that the phraseology for many class codes in this sector is not what it seems. A "driver" may not fall under the same code in two different states. This article walks you through trucking and transportation codes that are easy to misuse and shows you where to confirm the right code for your state.
7208: Drivers-Trucking-NOC — The Driver's Code You Can't Always Rely On
7208: DRIVERS-TRUCKING-NOC is frequently used to classify drivers in the trucking industry. NOC means “not otherwise classified”: the code is used when no more specific classification fits. Its wording covers drivers, while 7219 reads “all employees and drivers”, so check which wording matches the business before choosing.
7225: Automobile Towing & Drivers — Don't Overlook the Full Phraseology
The class code 7225: AUTOMOBILE TOWING & DRIVERS is often misapplied to any vehicle transport service. However, this code is specifically for businesses that provide towing services and operate tow trucks. It does not include general flatbed or cargo hauling. If a business is transporting vehicles for sale or for repair (not towing), a different code such as 7219 may be more appropriate. Always read the full phraseology carefully, and if in doubt, confirm with the state rating bureau. This is especially important in independent states like California or New York, where the classification system differs from NCCI.
7219: Trucking NOC All Employees & Drivers — The Broad Code for Trucking
7219: TRUCKING NOC ALL EMPLOYEES & DRIVERS is one of the most commonly used codes in the trucking industry. Its wording covers all employees and drivers, while office clerical staff usually sit under the clerical classification. NCCI's local hauling code (7228) and long distance hauling code (7229) map to 7219 in California, so verify the state's own list.
7272: Water Truck Service Companies All Operations — Read the Phraseology
7272: WATER TRUCK SERVICE COMPANIES ALL OPERATIONS is often applied to any company that hauls or delivers liquids. But this code is specifically for businesses that provide water truck services — including the delivery, maintenance, and operation of water trucks. If the business is transporting other liquids or operating under a different model, this code may not be appropriate. Always cross-check the business’s primary activity against the code’s phraseology. This is particularly important in independent states where the rating bureau may not accept this code in the same way as NCCI states.
When to Reach Out to the Rating Bureau — and Why
Independent states like California (WCIRB) and New York (NYCIRB) do not use NCCI class codes. Instead, they operate under their own rating systems. This means that even if you use a code correctly in an NCCI state, it may not be recognized or may be applied differently in an independent state. Always consult the appropriate rating bureau in the state where the business operates. For example, in California, the WCIRB provides detailed classification manuals and guidance. These resources are essential for avoiding misclassification and keeping pricing accurate.
