The rate an employer pays to insure an employee in case of a work-related injury is based on the industry type 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.
Employers must report their payroll using the NCCI classifications assigned to them.