At Missouri Employers Mutual, we know that some workers compensation class codes can be challenging to discern. Carpentry is one trade where asking some additional questions about the nature of the work is important before assigning a class. Carpentry classification is based on the type of tasks and type of structure where the work of being performed.
Watch the video below as Tracy Evans, Sr. Telephone Premium Consultant, explains the differences between class codes 5645 and 5403.
Class Code 5645: Residential remodeling and construction
Class code 5645 encompasses residential remodeling and the construction of homes or structures intended for residential use. This classification covers projects involving the development or renovation of properties that are three stories or less. The number of stories is important; apartment buildings three stories or less are considered residential.
Class Code 5403: Commercial Construction and Remodeling
Class code 5403 applies when a structure is intended for commercial purposes or mixed-use. If the building is going to be an apartment building and more than three stories, then it would fall into class code 5403 as well.
Key Consideration for Classification
If the remodeling work doesn’t involve any changes to the structure, such as framing or altering the footprint of the building, then the work can be divided into different trades like drywall, trim carpentry, installing cabinets, and hardwood flooring. However, if the work involves structural changes, then all these trades would fall under the appropriate project code (either 5645 or 5403).
Importance of Proper Classification
Proper classification of projects under the right class code is critical to ensuring proper insurance coverage. Misclassification can lead to premium quotes being miscalculated and additional premium adjustments at the time of an audit.
Maintaining Accurate Records and Consultation
Regardless of the specific class code, it’s essential to maintain meticulous records of all work conducted, including carpentry, electrical, plumbing, and painting tasks. Adequate record-keeping facilitates transparency and simplifies the auditing processes.
If you have questions, please call and speak with one of our Premium Consultants or Underwriters.