Janitorial Services Companies fall in Class Code 9014 for purposes of Workers Compensation Insurance.
NCCI Class Code 9014 has many different types of operations that are included within the code. The predominant business for this class code is commercial janitorial services companies. This type of business is defined as keeping a building clean by routine dusting; mopping, vacuuming, waxing, or polishing floors, emptying trash, cleaning or washing interior walls, and cleaning, sanitizing, and deodorizing restrooms. Most insurance carriers will allow for up to 10 percent of the businesses time be related to maintenance and minor repair work.
Specifics of Janitorial Services Companies
There are additional types of businesses that fall within NCCI Classification Code 9014. Those businesses include: Exterminators, Chimney Cleaning, Residential Boiler Cleaning, Swimming Pool Maintenance, Pet Waste Removal Services. In relation to Janitorial Services Companies, most insurance carriers want to offer coverage to cleaning companies that clean office locations. These are the least risky operations for a commercial cleaning company. The rates for workers compensation insurance are more favorable for businesses who clean offices.
Retail and other light commercial spaces are also less risky for the insurance carrier to offer coverage. Because of this, carriers offer much more favorable rates on premium. On the other end of the spectrum, it can be difficult to find an insurance carrier willing to offer coverage to businesses that clean industrial settings. When businesses who clean industrial settings do find coverage, it is normally at a higher rate of premium.
Floor waxing is another type of operation underwriters take into account. Some carriers allow for floor waxing to be as much as 25 percent of the business operations. While floor waxing is acceptable, power washing is an activity that is not very favorable to insurance carriers.
When commercial janitorial services companies also offer their services to residential clients, the amount of residential clients must be less than 50 percent of the operations or the business must be placed within class code 0917. Workers Compensation Rates are typically higher when businesses use this class code. Many carriers have a very low appetite for residential companies because it is a less controlled work environment.
If a business is not able to find coverage on the open market, the business will be forced to find coverage from the state provider. Policies offered by the state provider are almost universally higher in cost. Partnering with an independent insurance agent is a great way to determine which classification code is proper for your business, whether your business should go with a traditional or pay as you go policy, and what you as a business owner can do to lower what you pay for premium.
