Class Code: 1322

Per NCCI's Scopes Code Description:

Code 1322 is applied to specialist contractors conducting “work-over jobs.” Work-over jobs are operations on a producing well to restore or increase production. A typical work-over may involve cleaning of a well that is sanded up. For purposes of this classification, work-over has been expanded to include work on producing wells and wells that previously produced oil or gas.

Work-over jobs include the pulling, repairing or replacement of pumps, rods and tubing and the cleaning and swabbing of wells. This work is usually accomplished by using a special portable derrick or rig. A coil-tubing job is a specific example of a work-over job. This work consists of the insertion of a continuous steel tube into tubing already in the well in an effort to increase production of the well.

Special Conditions:

Extra-Territorial Classification Guidelines:

The following material was developed by NCCI to be used as a guide by auditors and underwriters in the determination of premium for contracting (construction risks) with extra-territorial employments where no company guidelines have been established for this purpose. Construction classifications are indicated by the addition of a construction code symbol () next to the classification code number.

   
1.    Payroll of employees of contractors who have their place of business in a given state and operate also in adjoining states and who are constantly crossing state lines, but usually return to their homes each night, must be assigned to their headquarters’ state. Example: Contractors such as electricians, plumbers, carpet layers, etc.
2.    The payroll for construction project managers, executives, or superintendents who may visit a job but who are not in direct charge of a job must be assigned to the state in which their headquarters are located.
3.    There are contractors who maintain a permanent staff of employees and superintendents. If any of these employees or superintendents is assigned to a job that is located in a state other than their headquarters’ state, either for the duration of the job or any portion thereof, their payroll must be assigned to the highest rated of either the state in which the job is located or the headquarters’ state.
4.    The payroll of employees who are hired for a specific job project must be assigned to the state in which the job is located.

When a portion of the operations of a risk are insured in a monopolistic state fund, consider the special rules and requirements that may exist in such cases.

Related Operations Not Classified to Code 1322:

Code 1322 is not applicable to an oil or gas lease owner/operator, or to insureds under contract to operate a facility for its owner.

Rate per $100. of Renumeration: $ 7.83

Construction Exemption Required: No