National Council on Compensation Insurance (NCCI)

Definition

NCCI is the organization that publishes the workers compensation classification system used by most US states (38 of 50 use NCCI codes directly; the rest use state-specific classification systems with similar structure). NCCI codes group occupations into risk categories — e.g., 8810 (clerical office), 5183 (plumbing), 5645 (carpentry).

Each NCCI code has a base rate set by state regulators based on industry-wide claim experience for that occupation. Your premium = wages × (rate/100) × experience modifier, summed across all class codes your workforce falls into.

Class code accuracy matters: an office manager incorrectly coded as a field technician can dramatically inflate your premium. PEOs split codes by actual role rather than broad-brushing the entire workforce into the highest-risk classification — this code-accuracy benefit alone can offset PEO admin fees in trade-heavy industries.

Common questions about National Council on Compensation Insurance (NCCI)

Related terms

• Workers compensation insurance — Insurance that pays medical expenses and lost wages for employees injured on the job, in exchange for limiting the employer's tort liability.
• Experience modifier (Mod) — A multiplier applied to base workers comp premium that reflects an employer's historical claim experience relative to industry peers.
• Workers comp class code — A four-digit code that classifies a job role for workers compensation premium calculation purposes.

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