What are General Liability Class Codes?
General liability class codes are groups of numbers that insurance companies use to classify businesses into categories of risk, to aid them in assigning the appropriate rate, coverages, and exclusions for GL insurance.
Naturally, different types of businesses are vulnerable to different types and degrees of risk. General liability class codes enable insurance companies to group insureds based on the type of work being performed and to collect statistical data affecting how they will underwrite that line of business.
Lookup General Liability Class Codes
Online General Liability Class Codes are shown below (Index only).
Continue reading for information regarding how to obtain authoritative underwriting material for general liability insurance.
Examples of how General Liability Class Codes are used:
A business consultant (ISO CGL Code 41677) is more vulnerable to errors that might harm a client’s revenues, whereas a carpenter (ISO CGL Code 91340) is more prone to the risk of personal injury.
Since each of these industries possess different risk exposures, they need different types GL classifications. General Liability classifications categorize businesses according to the service they provide and the hazards and risks that are specific to those services.
When GL Class Codes are used for Exclusions:
While insurance companies use GL codes to approve and rate businesses, they are also used to deny certain coverages as well. This is called an exclusion. Exclusions limit the insurance company’s liability for activities that fall outside of the insured’s classification. For example, if a residential carpenter (ISO CGL Code 91340) frames a residential house that is faulty and incurs damages, the business is covered. If however, they incur damages as a result of framing a building that exceeds three stories in height, the business is not covered because this is excluded from that particular GL code.
For example, if a residential carpenter (ISO CGL Code 91340) frames a residential house that is faulty and incurs damages, the business is covered. If however, they incur damages as a result of framing a building that exceeds three stories in height, the business is not covered because this is excluded from that particular GL code.
With general liability insurance, the insurance company assumes the following:
- The duty to defend you
- The duty to indemnify you
- The duty to settle a reasonably clear claim
What is General Liability Insurance?
General liability is the broadest, most common form of insurance purchased by businesses, protecting them from a variety of claims. General liability protects businesses aginst risks such as personal injury, property damage, and other types of bodily harm that result from the business operations.
In the event that the business is sued, GL insurance protects them against many hazards and risks. If a lawsuit is brought against a company with a GL policy, the insurance company pays for legal fees, losses, and damages that are incurred as a result of the lawsuit.
Below are a few examples of situations in which your business could be protected if you have general liability insurance coverage. With coverage, the insurance company is liable for certain legal expenses, medical expenses, compensatory and punitive damage:
- While visiting your business, a customer trips on a step and is injured.
- An employee of your residential electrician service accidentally leaves the water running, causing damage to a customer’s home.
- A class action lawsuit is filed against your insurance agency, alleging that advertisements constituted misleading information.
If you are looking for a GL class code list online, you can find them many places online–such as the official insurance agency associations for most states.
Many other websites post a general index of class codes that are important for their viewers, including insurance carriers, brokers, and agencies. However, these lists (Such as the list below) only provide a general index listing.
For underwriting purposes you will need a detailed, accurate, and authoritative guide – the PAAS General Liability Classification Guide.
The General Liability Classification Guide is available through PAAS on http://www.verisk.com/iso.html.
How Businesses are Classified for General Liability Insurance
Insurance companies assign general liability class codes based on company industry and the type of work performed. The rates developed the insured’s business classification are applied to the gross sales, square footage, or payroll as a rate per $1,000, depending on the industry. Liability insurance rating is based on gross sales for most businesses except for construction, where it is often based on both employee payroll and sub-contractor payments.
There is no universal standard classification system for general liability insurance. Insurance companies will typically base their rates off of other existing business classifications, such as ISO, NAICS, NCCI, or SIC classification systems. Alternatively, they might develop their own in-house classification system. The authoritative providers for the most common GL rating systems include:
To locate NCCI Class Codes, click the image below.
To view the SIC Code List, click the image below.
To view the NAICS Code List, click the image below.
To view GL Class Codes, scroll down.
You can also view lists of GL classification codes as originally published by others:
Florida Association of Insurance Agents | CCIS | Texas Department of Insurance | Arkansas Insurance Department | Builders & Tradesmen’s Insurance Services, Inc. | The Woodlands Financial Group | Fast Comp | CPC Forms | American Team Managers Insurance Services INC | Green Mountain Agency (.pdf download) | USASIA Insurance (.xls download)
*Disclaimer: For authoritative content regarding General Liability Class Codes, please obtain directly from iso.com
ISO CGL Class Codes List
After following the link below for ISO CGL class codes, you can press “Control” + “F” to search for a specific number or keyword.
List of General Liability Class Codes Online