Article ID: 7ebea8a81b44024a7f3437086bb38b61d66b9a2e1a87a3432e3792bf883e0ae5
Source ID: secondary:businessinsurance.com
Published At: -
Extraction Method: bs4_heuristic
Body Text
Warehouse operations frequently misclassified under comp coding system - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Warehouse operations frequently misclassified under comp coding system by Louise Esola Workers Comp Coverage Sep 2, 2026 Businesses operating from warehouses are frequently classified as storage companies even when their primary business is wholesale sales or distribution, according to a report released Tuesday by the National Council on Compensation Insurance. In its study of class codes that are often changed, Boca Raton, Florida-based NCCI found that 56% of the workers compensation policies it inspected in 2025 under the general storage warehouse category required a classification change. Of the policies that were reclassified, 78% were moved to a retail or wholesale category, most commonly the classification for general wholesale stores. The classifications are important because they group employers according to the nature of their operations and workplace risks and are used to calculate workers compensation premiums. When a classification reflects the type of building an employer occupies rather than the business conducted there, an insurer may be evaluating the wrong set of exposures. In the case of warehousing and storage, NCCI said errors often occur when a business stores and ships its own merchandise from a warehouse. Although the location resembles a storage operation, it supports the employer’s broader business of selling and distributing products rather than providing passive storage for goods owned by others. The distinction between passive storage and active order fulfillment is commonly overlooked during underwriting, NCCI said. Underwriters should consider who owns the stored goods and whether workers are picking, packing, assembling, relabeling or preparing products for sale. Although the storage warehouse category returned to the top of NCCI’s annual list of most frequently changed classifications, the rate of reassignment has declined. The classification was changed on 60% of inspected policies in 2023 and 59% in 2024. The report analyzed classification inspections conducted between 2023 and 2025 in NCCI states. Other classifications in NCCI’s top 10 included convenience stores, clerical office employees, outside salespeople, carpenters, landscaping businesses, retail and wholesale stores, machine shops, and contractors that install cabinets or interior trim. Common changes involved moving policies into classifications that more precisely reflected employers’ primary operations, including insurance, residential construction, lawn maintenance, wholesale stores, hardware stores and machined-parts manufacturing. NCCI said classifications that repeatedly appear near the top of its list may indicate a disconnect between classification rules and how they are applied in practice, warranting closer attention when policies are issued. Related News Arizona high court sets new test for ‘fortuitous’ insurance losses September 2, 2026 H1 property/casualty net underwriting gain up sharply: Verisk, APCIA September 2, 2026 Firm puts a $100M value on acting human September 2, 2026 Insurer escapes payment of $5.25 million judgment September 2, 2026 PICC’s profit surges 38% September 2, 2026 Keystone taps Baldwin exec as brokerage leader September 2, 2026 Reinsurance sidecar market surges to record high: Aon Securities September 2, 2026 Swiss Re buys QBE’s trade credit operation September 2, 2026 Verisk lifts annual catastrophe loss estimate to $171B September 2, 2026 Facebook-f X-twitter Linkedin-in Business Insurance is a singular, authoritative news and information source for executives focused upon risk management, risk transfer and risk financing. Never miss important news: Become a Business Insurance Online subscriber today Subscribe Now Information About Us Contact Advertise Privacy Policy Terms & Conditions Copyright 2026. BUSINESS INSURANCE HOLDINGS Member, Beacon International Group, Ltd.
Metadata (JSON)
{
"score": 14.233333333333333
}