Landscaping Classifications for Workers Compensation Insurance

Discussion in 'Business Operations' started by BearWise Landscapers, Mar 22, 2010.

  1. BearWise Landscapers

    BearWise Landscapers LawnSite Senior Member
    Messages: 456

    I wrote an article recently in PRO Magazine about ways landscaping and lawn care businesses can Reduce Workers Compensation Premiums. I have received quite a few questions about a point I made in there about the importance of using correct employee classifications. Here is what I said:

    Use Correct Employee Classifications

    Each of the 600 classification codes for employees has a specific rate. Ask your insurance agent for copies of the official descriptions for those used in your policy—and verify that they are correctly assigned.

    Many states allow a business to use multiple classification codes; your employees who fulfill clerical duties will have a substantially lower rate than those out on jobsites. For landscapers, most states use code 0042 for landscape installation duties and the code 9102 for lawn maintenance duties. It is common for lawn maintenance employees to pay a double rate when misclassified in the installation code. ​

    I thought it would be worth starting a thread on here with more detail about those classification codes for landscapers and which states use them. I am licensed in about 20 states, but I currently only insure landscaping businesses in Florida. That's why most of the information I provide about workers' comp is specific to Florida. Here is a map of the roughly 40 states that use NCCI to administer their classification codes and rates:

  2. BearWise Landscapers

    BearWise Landscapers LawnSite Senior Member
    Messages: 456

    Class codes 9102 and 0042 only apply to the blue states in map above.

    9102 is used for landscape maintenance employees Click here for a description of class code 9102.

    0042 is used for landscape installation employees. Click here for a description of class code 0042.

    I wrote this article about the difference between class codes 0042 and 9102.

    If any of you have questions about these class codes and how they are used on your policy, feel free to ask me.

    I would also like to hear stories about savings you have seen on your workers compensation policy because you corrected employees who were misclassified. I have been able to correctly classify the employees of 6 businesses in Florida so far this year and it has saved them substantial premium dollars. With landscape maintenance employees misclassified in 0042, the rate is almost double the correct rate for 9102 in most states. Here are the 2010 workers compensation rates in Florida.
  3. BearWise Landscapers

    BearWise Landscapers LawnSite Senior Member
    Messages: 456

    There are a few other workers comp classification codes that can be used for landscaping businesses. Here are some of them:

    Class Code 0106 - This is used for employees that trim trees or leave the ground on a ladder to do other landscaping work such as bush or hedge trimming.

    Class Code 5183 - This is used for employees that engage in sprinkler repair and installation services in a yard or garden.

    Class Code 0005 - This is used for employees that work in a nursery or related division of a landscape business.

    Let me know if you have any questions about these other classification codes. 8810 is used for clerical office employees and 8742 is used for sales employees.
  4. jsf343

    jsf343 LawnSite Bronze Member
    Messages: 1,784

    Hmmmmmmmmmm... very good info! thanks for sharing, I am going to double check mine Monday.
  5. 5guys Lawn Care

    5guys Lawn Care LawnSite Member
    Messages: 2

    Drew, this is great information. I am having some problems with my workers comp and I found this page through Google. Thank you for giving us information. I'll call you shortly on the number from your webpage
  6. BearWise Landscapers

    BearWise Landscapers LawnSite Senior Member
    Messages: 456

    You are both welcome.

    Let me know if I can be of further assistance. If you or anybody else have specific questions about the correct classifications of your landscaping employees, feel free to ask them on here or give me a call. My phone number is 407-774-2327 x3917

    Consider me and the other agents at BearWise Landscapers a resource for your business insurance. You don't need to be in Florida or even one of my clients to ask us questions about your business insurance.
  7. Ground Effects Landscape

    Ground Effects Landscape LawnSite Member
    from Orlando
    Messages: 14

    Great Stuff! Thanks
  8. Gator Landscaping

    Gator Landscaping LawnSite Member
    Messages: 19

    I agree, this is great information. I appreciate all your help with my insurance. I read all these articles about workers comp and am going to move that last policy over to you in a couple of weeks. I think my current one expires this summer. Can you help me out before then? I'll just give you a call, but I think it's fun to have an insurance agent that uses a lawn care discussion website. I'll have my insurance with you for as long as I'm in business!
  9. LouisianaLawnboy

    LouisianaLawnboy LawnSite Silver Member
    Messages: 2,199

    Great info, I think the I may getting the raw end of the deal. I'll call me insurance agent.

    Is their a classification for just LAWNCARE without any landscaping?
  10. aem910

    aem910 LawnSite Member
    Messages: 21

    Dude pay attention...


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