NCCI's Classification Research - Top Reclassified Codes in 2024

By NCCI InsightsAugust 06, 2025

As part of its core services, NCCI conducts classification inspections in all NCCI states through its Classification Inspection Program (Program). The purpose of this Program is to monitor the accurate and consistent application of the classification system to maintain its overall integrity. One key component of the Program is to conduct inspections of a policyholder’s operations to determine whether the governing classification code or other classification code(s) identified on the policy reflect the current business operations.

Inspection Data

Based on an analysis using data obtained from the Program between 2022 and 2024, the table below shows the top 10 reclassified governing codes and the top code to which NCCI reassigned each of these governing codes. The ranking order is based on the percentage of policies that were reclassified.

Note: The Trend column indicates changes in ranking compared to the previous “Top Reclassified” article:

A green downward arrow (▼) indicates an improvement in rank (moved further down the list)
N/A indicates it was not ranked in the top 10 of the previous “Top Reclassified” article
-- indicates that the classification code remained in the same rank as last year’s “Top Reclassified” article

This article will examine the top five reclassified codes and explore the reasons why NCCI is frequently reclassifying these codes.

Code 7380—Drivers, Chauffeurs, Messengers, and Their Helpers NOC—Commercial

In 2024, Code 7380 emerged as the most reclassified classification code on NCCI’s "Top Reclassified Codes” list—its first appearance in the top spot since 2011. An analysis of policies where Code 7380 was the governing classification revealed that:

Over 80% of the policies inspected resulted in a change to their governing classification code
Of those, close to 54% had their governing classification code reassigned to a mercantile code

Reassignment of Code 7380 to a Mercantile Code

More than half of the policies inspected with Code 7380 as the governing classification code resulted in a change to their governing classification code due to the employers operating businesses that sell merchandise, often with warehouse operations. Further analysis showed that:

The most common reclassification was to Code 8018—Store—Wholesale—NOC, which accounted for 25% of the reclassified policies
Code 8010—Store—Hardware accounted for 10% of the reclassifications
An additional 16 other mercantile classification codes collectively made up close to 19% of the reclassified policies

In certain instances, Code 7380 remained on NCCI’s inspection report due to continued driving or delivery exposure. However, to more accurately reflect the employer’s current operations—primarily retail or wholesale mercantile business—a mercantile classification code was added as the governing classification code.

Code 8292—Storage Warehouse NOC

Code 8292, which previously held the top spot for reclassified codes, has now slipped to second place. Despite this change in ranking, Code 8292 continues to be a highly reclassified code.

This year’s data shows that nearly 59% of the policies inspected with Code 8292 as their governing classification code resulted in a change to their governing classification code. This marks a slight decline from the 60% shown in the 2023 analysis.

Reassignment of Code 8292 to a Mercantile Code

Last year, it was noted that a primary reason for the reassignment of policies from Code 8292 to a mercantile classification was that the employers operated businesses that engaged in the sale of merchandise. A closer look at the data reveals that this trend continues to be the case. Of the reclassified policies, 80% were reassigned to a mercantile classification code. Code 8018—Store—Wholesale—NOC was the most common reassigned code. This code alone accounted for 49% of the 80% that were reassigned to a mercantile classification code.

When a mercantile business operates a warehouse exclusively for handling, storing, and distributing its own products, that facility is considered an extension of the business itself. As such, it is not separately classified to a warehousing code.

Another key factor contributing to the reclassification trend is the proper classification of third-party fulfillment centers. These businesses are contracted to store merchandise on behalf of their clients and are responsible for processing, packaging, and shipping individual customer orders as they are received.

Code 8292 is a warehousing classification code intended for employers that store merchandise for others and do not own the merchandise being stored. These employers typically provide long-term storage services and do not perform order fulfillment or distribution activities.

Code 8810—Clerical Office Employees NOC and Code 8742—Salespersons or Collectors—Outside

Code 8810 and Code 8742 continue to rank among the top reclassified codes, holding the third and fifth positions, respectively. Despite their high rankings, both codes are experiencing a notable downward trend in reclassifications.

Approximately 42% of the policies initially assigned to either Code 8810 or Code 8742 were reclassified to a different governing classification code. Of the policies that were reclassified from Code 8810 or Code 8742, over 26% were reassigned to Code 8723—Insurance Companies, Including Clerical & Salespersons.

This marks a 10% decrease from last year, when more than 36% of such reclassifications were to Code 8723, and a 24% drop from two years ago, when the figure was 50%.

Reassignment of Code 8810 and Code 8742 to Code 8723

The reclassification of employers from Code 8810 and Code 8742 to Code 8723 continues to be due to changes in the classification system, specifically Item B-1419—Revisions to Basic Manual Classifications and Appendix E—Classifications by Hazard Group, which established Code 8723 for insurance companies in 2012.

Code 8006—Store—Convenience—Retail

Over the past three years, Code 8006 has consistently ranked among the top reclassified classification codes. The data shows that over 43% of policies inspected with Code 8006 as the governing classification resulted in a change to their governing classification code, marking a 5-percentage-point increase from the previous year.

A closer examination reveals that NCCI reclassified more than 69% of those policies to just two classification codes:

36% of policies inspected were reassigned to Code 8017—Store—Retail NOC, which applies to retail stores that sell merchandise that is not described by a specialty retail store classification code.
33% of policies inspected were reassigned to Code 8033—Store—Meat, Grocery and Provision—Combined—Retail NOC, which applies to retail stores that sell grocery items as well as fresh and cured meats, poultry, or fish.

Reassignment of Code 8006 to Code 8017

Policies reassigned from Code 8006 to Code 8017 included businesses that operated coffee shops, ice cream shops, specialty beverage shops, and smoothie shops as well as retail stores primarily selling tobacco and alcohol. These businesses did not offer the range of products commonly found in convenience stores or grocery stores, and therefore did not meet the criteria for Code 8006.

Reassignment of Code 8006 to Code 8033

The reassignment of grocery and convenience stores from Code 8006 to Code 8033 was primarily due to the stores handling, cutting, or packaging fresh or cured meats, poultry, or fish—activities that are not allowed under Code 8006.

Underwriting Circulars

In addition to the top reclassified codes article, NCCI also releases various underwriting circulars on classification, trends, and other topics related to rules or forms to communicate and provide guidance for properly classifying business operations. These circulars are available for affiliates on ncci.com.

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Class Look-Up Tool

NCCI’s Class Look-Up tool allows users to look up classifications, statistical codes, and related filed and nonfiled content. Users can filter or refine results by selecting or deselecting specific code elements. The tool also provides a code and phraseology snapshot that includes information about the specific code selected and five years of rate history. This tool is free for use by authenticated users.

Summary

Assigning the appropriate classification code at policy issuance is an important step in maintaining the integrity of the classification system. NCCI’s Basic Manual contains the filed and approved phraseology and notes for each classification code. NCCI’s Scopes^® of Basic Manual Classifications, a supplement to NCCI’s Basic Manual, is a guide to understanding and assigning classifications. Using NCCI’s Class Look-Up tool and manuals, in addition to asking appropriate questions regarding an employer’s operations, can greatly reduce the number of reclassified codes.

NCCI is sharing its cumulative findings to provide information about emerging trends identified within its Classification Inspection Program. The general code information provided includes examples of reclassification areas that were identified. Without a specific inspection to reference, NCCI can only provide general information on the codes involved.

If you have any questions, please contact our Customer Service Center at 800-NCCI-123 (800-622-4123) or email us at customer_service@ncci.com. We’re here to assist you Monday–Friday, 8:00 a.m.–8:00 p.m. ET.

This article is provided solely as a reference tool to be used for informational purposes only. The information in this article shall not be construed or interpreted as providing legal or any other advice. Use of this article for any purpose other than as set forth herein is strictly prohibited.