The rate an employer pays to insure an employee in case
of a work-related injury is based on the industry pursuit of the employer.
BWC reviews the information on the coverage application and assigns manual
classifications to the employer that correspond with the work being done and
the risk of injury due to hazards associated to that work.
For example, the manual classification for an office worker carries
a lower rate than the manual classification for a construction worker.
This is because there is less hazard and risk of injury for the
office worker and claims costs for office workers are typically lower than
claims costs for construction workers.
BWC converted its manual classifications to those established by the
National Council on Compensation Insurance (NCCI). BWC implemented this change,
mandated by law, over a four-year period, 1996 through 2000. BWC converted to the
NCCI classification system because it represents a more equitable premium rate structure
than the previous system. It also is a more accurate and understandable system, which better
classifies employers by their predominant business.
