Here’s some special workers compensation code information for companies classified as Tow Truck Drivers:
I had met with an insured in New Hampshire that was engaged as a tow truck driver. They had a fleet of various size tow trucks that were capable of carrying one to number vehicles. Their operations were within a 200 mile radius of their offices and yard.
While I was inspecting their facilities to determine the appropriate classification codes that should apply, I noticed that one of the employees was changing the oil in an automobile. I asked the owner if this automobile was owned or operated by their business. The owner explained to me that every once in a while, they will change the oil for some of their towing clients.
The NCCI Scope of Code 7228 states that an insured must be “solely” engaged in towing vehicles to qualify for the assignment of Code 7228. Based on the fact that this insured was “not” solely engaged in towing vehicles but performing occasional oil change qualified this insured to be classified under a different code, automobile repair. For this risk, it enabled them to realize substantial savings in their premium by changing the classification code from 7228 to a better more descriptive code.
It should be noted, that there are few state exceptions where this would not apply (see the Scope of Code 7228 for state specifics).
Be sure to contact our office if you have a similar situation, are experiencing a classification code problem or have had codes changed on your policy after an insurance audit that just don’t seem to be right. We may be able to help!
Paul
