Virtually every business with employees is required to have workers compensation insurance, as this is mandated by state law contingent on where your company operates it’s business. It can be difficult to know what workers comp class codes for adult day care business should be used when first applying for a workers compensation policy.
These are the most commonly used Adult Day Care workers comp class codes that are commonly used in New Jersey and New York:
Workers Comp Codes for Adult Day Care facilities in New Jersey: 
- Code 8868 – Professional Employees & Clerical
- This classification has a lower rate and includes your office and medical staff such as administration, bookkeepers, nurses, therapists, and social workers.
- Code 9106 – Non-Professional Employees & Drivers
- This classification has a higher rate and includes all of your other employees such as aids and drivers.
Keep in mind that in New Jersey adult day care and senior care facilities provide much more skilled nursing and medical care than do adult day care facilities in states like New York. When selecting which codes to use be mindful of the skilled care versus unskilled care component. There is a significant workers compensation premium cost difference between these two classes of employees. Make sure you spend time on coding the employees correctly.
Workers Comp Codes for Adult Day Care facilities in New York:
- Code 9063 – YMCA, YWCA, YMHA OR YWHA, Institution—All Employees—& Clerical
- This classification typically has a lower rate includes virtually all your employees except for drivers.
- Code 7380 – Drivers and Helpers NOC—Commercial
- This classification has a higher rate and would typically be reserved only for your drivers.
These are the codes that typically are used and generate the bulk of the premium. However, there may be clerical codes for employees that only work clerical functions. There may be Executive Officer codes used for the owners or directors of the facilities. These are good to use for those folks as typically their payroll is capped to a maximum amount. This will vary by state. To truly understand how these codes are used and deployed you must refer to your state’s workers compensation rating boards rules and regulations. There each code has a description for how it’s applied. Similarly to the above example in New Jersey be mindful of the skilled versus non skilled medical component.
Careful about shifting payroll from one class code to another purely because it’s cheaper. In certain states like NY they come down hard on companies that unwittingly evade rates through code shifting. They consider that insurance fraud, which may be a felony in states like NY. So definitely stay away from that!
Finally, in New York you might be eligible for the Safe Patient Handling Credit which is an additional 2.5% off the premium.
If you have questions or simply want more information, call a Risk Advisor @ (914) 488-4164.
