The Standard Classification System is designed so that all activities that are normally associated with a specific business are assigned to the one classification that most accurately describes the entire business. Stated another way, each classification generally applies to all of the "normal and usual" activities of a business, not just a single operation or the most hazardous activity. This rule is referred to as the Single Enterprise Rule. If your business, at one or more locations, consists of operations described by a single classification, your entire business will be assigned to that single classification and all payroll and loss data submitted by your insurance company to the WCIRB will be reported using that classification. It is important to remember that the pure premium rate for a classification represents the average risk of injury, not merely the highest risk, for the activities associated with a given classification.
Single Enterprise Example
An automobile body repair shop employs auto body repair technicians, painters, job estimators, auto detailers and shop clean-up personnel. Although the exposure to potential workplace injuries differs for each of these employees, all of these operations are normally associated with auto body repair shops. As a result, all of these employees are assigned to Classification 8393, Automobile or Truck Body Repairing and Painting – all employees including estimators, service writers and customer service representatives. Although a separate classification exists for auto body painting, Classification 9501(3), Painting – automobile or truck bodies, it does not apply in this case because the painters are employed by an auto body shop and are included in the body shop classification.
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