November 22, 2022 | Workers' compensation

When you are injured at work, it could mean having to seek medical treatment. If your injuries are especially severe, you may require intensive treatment and have to undergo several medical procedures thereafter. Serious injuries also mean not being able to work for a while as you recover. If you’ve suffered a catastrophic injury, you may never be able to return to work. Your injuries can have a significant impact on your finances. It is a great relief to know that you can receive compensation for your injuries by making a workers’ compensation claim.

Workers’ compensation was designed to provide injured workers with a financial cushion following injuries that occur at work or while carrying out work-related tasks. However, recovering compensation for work-related injuries and illnesses isn’t as easy or straightforward as many hope it would be. There are many factors that come into play when recovering compensation. Below, we discuss workers’ compensation codes and how they can influence your case.

What are Workers Compensation Classification Codes?

Workers’ Comp codes are four or three digit codes that are used by insurance companies to identify the type of work that different workers are engaged in. Insurance companies use these codes in the estimation of the risks that the workers are exposed to. The insurance company uses this estimation to determine the cost of the workers’ compensation insurance that the employer will pay.

The most widely used system for classification of workers and job types is that which was developed by the National Council on Compensation Insurance (NCCI). The NCCI Scopes Manual is used in thirty-five states in the US. The other fifteen states use their own systems to classify employees. Under workers’ compensation, these fifteen states are referred to as independent states.

The NCCI Scopes Manual outlines written descriptions of business operations as well as four-digit classification codes. It also includes information on the losses accumulated in regards to specific types of work. Insurance companies use the information provided by the classification system to determine how much the employer will pay for workers’ compensation insurance cover.

In general, the higher the risks faced by the worker, the higher the cost of the workers’ compensation insurance. For example, workers in the construction industry face higher risk of severe injuries compared to programmers working in an office environment. The cost of workers’ compensation insurance for a construction contractor will be much higher than that of the programmers’ employer. This is because the workers’ compensation codes for both of these jobs represent different levels of risk.

There are various other factors that also influence the cost of workers’ compensation coverage. These include:

• Your location – different states have different requirements for workers’ compensation coverage. These requirements will influence the cost of coverage.
• Payroll – the size of the company and how much the workforce is paid will also determine the cost of the workers’ comp coverage.
• Claims history – If there have been claims made against the workers’ comp coverage before, the cost of coverage will generally be higher than for those employers without claims.

Do Workers’ Compensation Codes Affect Workers Compensation?

Workers’ compensation codes are used to calculate how much your employer ought to pay for workers’ comp coverage. The codes are used to determine the level of risk that the workers are exposed to and how much insurance coverage the employer requires. These codes however, do not have a direct impact on worker’s compensation claims. To understand why this is the case, we should look at how workers’ compensation benefits are calculated.

While the exact amount you will receive as workers’ compensation benefits is impossible to predict, there are several factors that influence how much you will receive. These include:

• Average weekly wage including your gross wages, bonuses and overtime. If you had a second job at the time of the accident, the wages earned from the second job will also be factored in determining how much your average weekly wage was at the time of the injury. The higher your average weekly wage, the higher your benefits for lost income will be. You will be compensated two-thirds of the average weekly age.
• The cost of medical treatment. The insurance carrier will pay for treatment for work-related injuries or illnesses. These benefits are paid to the facility or doctor that provides the treatment.
• Resulting disabilities. If you have suffered a disability as a result of the work-related accident or illness, you will be compensated based on guidelines provided by the American Medical Association. Workers compensation covers temporary partial disability, permanent partial disability, temporary total disability and permanent total disability.
• Death of the worker. If the worker dies as a result of work-related injuries or illness, their survivors can claim compensation. They will receive burial benefits to cover funeral expenses. Death benefits may also be paid to replace the money lost as a result of the death of a worker.

It is important to work with an experienced workers’ compensation attorney to recover full compensation for your work-related injury or illness.

What are Workers Comp Class Codes