By Roberto Ceniceros
Nov. 2, 2012
Employers whose operations are temporarily interrupted due to Superstorm Sandy may experience a change in their workers’ compensation premium calculations.
NCCI Holdings Inc. on Oct. 31 reminded workers’ comp underwriters of employee classification code changes insurers may apply when inclement weather or disasters force employers to temporarily suspend operations or shift workers into new roles.
Underwriters, for example, can apply an office clerk classification code when employers continue paying workers while their normal business operations are interrupted. That could help employers during year-end premium audits, for example, if their employees are normally classified as construction workers, which require higher premiums payments than insuring office clerks.
Employee classification codes also could change temporarily if, for instance, an employee normally performing office duties is called on to remove damaged trees from an employer’s property.
NCCI’s announcement only applies in states where Boca Raton, Florida-based NCCI provides rating services. It does not provide those services for New York and New Jersey, two of the hardest-hit states.
The announcement is available here.
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