Child Care Insurance | Workers' Compensation

Workers' Compensation Codes Related to Child Care

Employees are grouped into classification codes based on their job duties and work functions. The National Council on Compensation Insurance (NCCI) currently utilizes nearly 800 class codes to help insurance companies and agents categorize employees for rating purposes. Insurance companies set a base manual rate for each class code in order to begin pricing a policy.

Properly classifying workers is an important part of the quote process. Mis-classified employees can cost small businesses thousands of dollars. You could end up paying too much for coverage or owing more money after an annual audit.

Class Code 8869 | Child Care Insurance

Daycare businesses are primarily engaged in providing care for pre-school and school aged children. Services may be provided in a commercial building or a caregivers' home. A child care provider assumes the care, custody and control of a child for a set amount of time. Children may either be dropped at the facility or transported by the daycare provider. Meals, naps and recreational activities are common with child care. Some providers such as Montessori schools also provide various educational instruction.

In the event a child care center utilizes its own vehicles and drivers, drivers should be separately rated under class code 7380- Drivers and Chauffeurs.

Child day camps also fall under class code 8869 as long as operations do not include overnight accommodations. Overnight recreational camps, such as children adventure camps and vacation camps, generally fall under class code 9015- Camp Operations.

Adult daycare and senior care services should be separately rated under class codes 8868 and 9101-School Employees.

Related: day care, child care center, pre-school, day nursery, in-home day care, learning center, home child care.