Insurance Terminology
What Does NOC Mean in Insurance?
NOC — Not Otherwise Classified — appears in dozens of workers comp and general liability class code names. It is a catch-all designation that almost always means you are paying more than you need to. Here is what it means and what you can do about it.
Definition
NOC = "Not Otherwise Classified"
It is the insurance industry's catch-all for job types that don't fit a more specific category.
The plain-English definition
When the NCCI (or a state rating bureau) creates class codes, they define specific codes for the most common and well-understood job types. For everything else — job types that don't fit neatly into a specific code — they create an NOC code. The NOC code is intentionally broad, which means it covers a wide range of risk levels and is priced accordingly.
Common NOC Codes in Workers Comp
- 5403 — Carpentry NOC
- 8227 — Construction NOC
- 9519 — HVAC NOC
- 5191 — Electrical NOC
- 7380 — Trucking NOC
- 8742 — Salesperson NOC
More Specific Alternatives
- 5645 — Carpentry, Residential
- 5606 — Contractor, Executive Supervisor
- 5537 — HVAC, Residential
- 5190 — Electrical, Wiring
- 7382 — Trucking, Local Hauling
- 8810 — Clerical Office
Why It Matters
Why NOC Codes Cost More
Broader Risk Pool
An NOC code covers many different job types with varying risk levels. The rate is set to cover the average of all those risks — which is higher than a specific code for a lower-risk trade.
Less Actuarial Data
Specific codes have decades of loss data for that exact job type. NOC codes have mixed data from many job types, which introduces uncertainty. Insurers price uncertainty with higher rates.
Carrier Discretion
When a carrier cannot identify a specific code, they default to NOC. Some carriers do this intentionally to collect higher premiums. An independent agent can challenge this on your behalf.
Paying an NOC Rate? Let Us Check.
We review your class codes at no cost. If a more specific code applies to your trade, we'll find it and get you reclassified before your next renewal.