What Are General Liability Class Codes?

Q: What Are General Liability Class Codes?

General liability class codes are numbers insurance companies use to help classify risk level for businesses.

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Key Takeaways

General liability class codes are numbers that insurance companies use to group businesses by the type of work they do and how risky it is to insure them.
Insurance rates generally increase for industries with higher associated risks. Rates may also vary by state.
Common class codes include barber shops (10113), consultants (41677), florists (12841), photographers (16471), technology service businesses (91555) and restaurants without alcoholic beverage sales (16900).

When you get a general liability insurance policy, insurers can use class codes to help determine:

Risks your employees face
Rates that companies like yours pay for coverage
Coverages that companies in your industry need
Exclusions that can affect your policy coverage

Different organizations manage their own classification systems and class codes for general liability, such as the:

If you’re looking to learn more about general liability class code definitions or how the classification system works, you’ve come to the right place.

Why Are General Liability Codes Important?

General liability class codes help insurance companies give small businesses accurate business liability insurance quotes.

Commercial general liability class codes are associated with specific rates. Generally, a class code has a higher rate for businesses associated with more risk.

Be aware that rates can vary between states, so general liability insurance costs can change depending on your location.

A general liability code also applies to the type of work that a specific industry or class does. If there’s a liability loss because a company performed work outside of its industry, an insurer may not cover the claim.

small business owner happy to know gl class codes

How Do Insurers Use GL Class Codes?

Not every business industry is the same, and each company faces unique risks. Insurance providers use general liability classifications to predict a business’ risk level based on industry data and the type of work performed. Your insurer can also use your class code to list specific exclusions in your general liability policy.

For example, let’s say you own a flower shop. When you get a quote for general liability insurance coverage, the insurer assigns your small business a class code for flower shops.

After you get coverage, you decide to renovate your storefront, and one of the construction contractors suffers an injury while working on your new entryway. Your general liability coverage won’t help pay their medical costs or a potential lawsuit, because the renovation was outside the scope of work for flower shops.

Insurance companies use class codes for more than just general liability coverage. In fact, they use workers’ compensation class codes when determining premiums for workers’ compensation insurance.

General Liability Class Codes Lookup

Here are some common class codes for insurance:

Barber shops – 10113
Consultants – 41677
Florists – 12841
Photographers – 16471
Technology businesses doing computer service or repair – 91555
Restaurants that don’t sell alcoholic beverages, with table service – 16900
Sales or service organizations – 47367
Carpet, rug, furniture or upholstery cleaning on customers’ premises – 91405
Buildings or premises, banks and other financial institutions – 61223

Whether you’re researching ISO codes, NAICS codes or SIC codes, you can visit each organization’s website to see a list of general liability classification codes.

Tip:

Industries facing more risk typically have higher general liability costs.

Get General Liability Insurance Today

If you’re looking for general liability insurance, we can help. We’ve helped over 1 million small business owners get the coverage they need, and we want to do the same for you. Our specialists can let you know what your business’ general liability class code is or help answer your coverage questions. Whether you need to file a claim or get a quote, we’re here to help.

Get a general liability insurance quote today.