Understanding Workers’ Comp Class Code 5190

Workers’ compensation insurance is essential for businesses in the construction and electrical trades. One specific classification that applies to electrical work inside structures is workers’ comp class code 5190. This classification is used by insurance providers to determine premiums for businesses whose employees perform electrical wiring tasks within buildings.

If your business involves electrical work and you want to ensure you’re properly classified while keeping your insurance costs manageable, understanding workers’ comp class code 5190 is crucial. Contact NPN Brokers at (561) 990-3022 for a quick quote and to find coverage that fits your needs.

What Is Workers’ Comp Class Code 5190?

Workers’ comp class code 5190 applies to employees engaged in electrical wiring within buildings. This code is specifically for interior electrical work, meaning it covers tasks performed inside residential, commercial, or industrial structures. It does not apply to outdoor electrical work, such as power line installation or street lighting, which falls under different class codes.

Insurance companies use class codes like 5190 to assess risk levels and calculate premiums. Since interior electrical work often involves working with live wires, confined spaces, and elevated locations, it carries moderate risk compared to some other trades. Understanding how your business fits within this classification can help ensure you’re paying the right premiums and maintaining proper coverage.

Who Does Class Code 5190 Apply To?

This class code primarily applies to businesses and employees involved in electrical work within structures. Electrical contractors specializing in interior wiring fall under class code 5190. These contractors handle projects such as installing wiring for new constructions, renovations, or repairs within existing buildings. Journeymen and master electricians performing wiring tasks inside buildings are categorized under this code as well. Their work includes installing outlets, switches, light fixtures, circuit breakers, and electrical panels.

Maintenance workers who perform routine electrical repairs and upgrades within commercial or residential properties also fall under class code 5190, provided they work exclusively indoors. Even apprentices assisting licensed electricians in interior wiring projects are covered under this classification. It’s important for business owners to understand which employees fall under this classification to ensure accurate reporting and avoid unnecessary costs.

Types of Work Covered Under Class Code 5190

The scope of work under workers’ comp class code 5190 includes a wide range of electrical tasks performed within buildings. These tasks typically involve installing electrical systems in new constructions, rewiring existing structures during renovations, and installing and maintaining light fixtures, outlets, and switches. Electricians under this classification also upgrade electrical panels and circuit breakers, install low-voltage systems such as security alarms and data cables, and troubleshoot and repair interior electrical issues.

While these tasks are covered, it’s important to note that outdoor electrical work, such as installing transformers or working on overhead power lines, falls under different class codes. Misclassifying work can lead to claim denials and increased premiums, so it’s crucial to ensure employees are properly categorized based on the work they perform.

Workers’ Comp Insurance Requirements for Class Code 5190

Businesses with employees performing interior electrical work must carry workers’ comp insurance to comply with state laws and protect their workforce. Requirements vary by state, but most states mandate coverage if you have at least one employee. This insurance provides coverage for medical expenses if an employee is injured while performing electrical work inside a building. It also covers lost wages if an injury prevents an employee from working and provides employer liability protection against lawsuits related to workplace injuries.

Having the right workers’ comp insurance not only protects your employees but also safeguards your business from financial strain. Without proper coverage, your business could face fines, lawsuits, and increased premiums. Ensuring your employees are correctly classified under class code 5190 can help you meet these requirements while keeping costs manageable.

Risk Factors for Class Code 5190

While interior electrical work is less hazardous than outdoor power line work, it still carries certain risks. Insurance companies consider these factors when calculating premiums. Working with live wires increases the risk of electrical shocks, which can result in severe injuries. Electricians often work on ladders or scaffolding, increasing the risk of falls. Electrical work in crawl spaces, attics, or tight mechanical rooms can pose additional challenges. Faulty wiring or improper installations can lead to electrical fires.

By implementing strict safety protocols and providing comprehensive employee training, businesses can mitigate these risks and potentially lower their insurance premiums. Conducting regular safety inspections, ensuring proper use of personal protective equipment (PPE), and promoting a culture of safety can go a long way in reducing workplace injuries.

Exclusions and Related Class Codes

While class code 5190 covers most interior electrical work, certain tasks fall under different classifications. For example, outdoor electrical work involving power lines and transformers falls under class code 7539. Installing security systems and fire alarms is classified under class code 7600, while running data and phone lines typically falls under class code 7605.

Proper classification is essential for avoiding overpayment or gaps in coverage. Misclassifying employees can lead to penalties, denied claims, and increased premiums. Working with a knowledgeable insurance broker can help ensure your employees are correctly classified and your coverage remains accurate.

Why Proper Classification Matters

Misclassifying employees can lead to higher premiums, penalties, or uncovered claims. For example, classifying outdoor electrical workers under code 5190 could result in claim denials if an injury occurs outside a building. Proper classification ensures that your business is only paying for the coverage it needs while maintaining compliance with state regulations.

Working with an experienced insurance broker ensures that your business is properly classified and only pays for the coverage it needs. Brokers can help you navigate complex classification systems, identify cost-saving opportunities, and secure comprehensive coverage tailored to your business’s unique needs.

Frequently Asked Questions About Workers’ Comp Class Code 5190

• Is class code 5190 only for licensed electricians? No, it applies to anyone performing interior electrical work, including apprentices and maintenance electricians. As long as the work is performed inside a structure, the employee falls under class code 5190.
• Can I use class code 5190 for outdoor electrical work? No, outdoor electrical work falls under different class codes, such as 7539 for power line construction. Using the correct classification is crucial to ensure claims are covered and premiums remain accurate.
• How can I lower my workers’ comp premiums? Implementing safety programs, maintaining a low claims history, and working with a knowledgeable broker can help reduce your premiums. Regular safety training and thorough risk assessments can further lower your exposure.
• What happens if I misclassify my employees? Misclassification can lead to higher premiums, denied claims, and potential penalties during audits. Accurate classification ensures proper coverage and prevents unexpected costs.

How NPN Brokers Can Help

Finding the right workers’ comp insurance for electrical employees doesn’t have to be complicated. NPN Brokers specializes in helping businesses in high-risk industries, including electrical contractors, secure affordable coverage with no contracts, deposits, or audits.

We offer flexible pay-as-you-go plans that allow you to only pay for the coverage you need. Our quick quote process ensures you can get a quote within minutes, and our fast coverage options allow you to start your policy in as little as 24 hours. This flexibility allows you to focus on running your business without worrying about complex insurance requirements.

Call NPN Brokers at (561) 990-3022 today or fill out our online quote request form to get started. Protect your employees, stay compliant, and control your insurance costs with the right coverage under workers’ comp class code 5190.