Rating bureaus assign individual class codes to each industry type. The type of business is classified rather than the duties of the individual employees, and a "governing class" is assigned to that operation. Classifications are important to establish baseline for risk.
Contractors are an exception. Multiple class codes may be assigned depending upon the different types of work the business performs. For instance, a contractor who does drywall installation and painting has both the drywall and painting codes assigned to it.
Three "Standard Exception" codes – 8810 (clerical employees), 8742 (outside sales employees) and 5606 (construction supervisors for contracting operations only) – can be assigned along with an insured's governing class.back