Class Code: 4825

Per NCCI's Scopes Code Description:

Code 4825 is applied to insureds engaged in compounding, blending or packing drugs, medicines or pharmaceutical preparations including the manufacture of ingredients used in these products.

Code 4825 risks receive most ingredients including binders, oils, extracts or flavorings and colorings from others. The manufacturing process may include distilling, cooking, separating, grinding, pulverizing, sifting, compounding, drying, liquidizing and blending the ingredients with or without heat. Some ingredients may be mixed with binders and pressed into pill or tablet form. Some pills may be coated and dried or some ingredients may be worked into a paste or formed into cakes. The operations are usually automated and some manufacturing stages may require rigidly controlled temperature and humidity conditions.

The manufacture, packaging and labeling of patent drugs, medicines, ointments, powders, cough preparations, tooth preparations, shaving creams, tonics, shampoos, perfumes, colognes and cosmetics are examples of the compounded products that are assigned to Code 4825, provided the insured also engages in the manufacture of ingredients for these products. As evidenced by this classification’s footnote, metal container manufacturing is separately classified.

Code 4825 additionally contemplates incense manufacturing, licorice extract manufacturing and penicillin manufacturing.

Code 4825 is also applied to insureds engaged exclusively in the manufacture of essential oils or to insureds who manufacture essential oils and, in addition, manufacture flavoring, medicinal or perfumery extracts. The raw ingredients received from others are flower blossoms, beans, berries, roots, herbs, fruit peels or rinds, and alcohol. Depending upon the product to be extracted, the required ingredients may be ground, crushed, pressed, cooked, steamed or distilled. In the case of perfumery extracts or oils, extreme care is required in the extraction of natural perfume from flower blossoms. Extensive testing is required to obtain the proper blending proportions. The extracts or oils are then mixed and blended for strength, consistency and color. All products are filled into bottles or cans, labeled and shipped.

Code 4825 is also assigned to insureds engaged in the manufacture of natural dye or tanning extracts. Various dyewoods, vegetable barks, licorice roots, chestnut wood, sumac plants or bushes, twigs and leaves, and alcohol are received from others. Depending upon the product to be extracted and the raw material involved, the required ingredients may be ground or chipped into small proportions. Further operations may involve curing by saturation, percolation, extraction, concentration or evaporation. Tanning extracts are usually pumped into vats and then filled into barrels. Other extracts are filled into bottles or cans. All products are labeled and shipped.

Home infusion pharmacies manufacture infusion/intravenous pharmacy solutions. These solutions, along with related equipment, are delivered to patients’ locations. These risks may also employ nurses who educate the patient on proper use of the product. This process may take place in a hospital (with a patient that is about to get discharged) or at the patient’s home. The home visit may include changing medical dressings, administering infusion pharmacy solution, cleaning the treatment area, and additional patient education. The preparation of the infusion products is assigned to the appropriate pharmaceutical preparation code (e.g., Code 4611 or Code 4825). The visiting nurses are assigned to Code 8835.

Code 4825 is also applicable to risks that manufacture syrups for carbonated beverages.

Refer to Code 8047—Store—Drug—Wholesale for risks that are principally engaged in the wholesale distribution of drugs, medicines and pharmaceutical ingredients used for the compounding and preparation of prescriptions.

Refer to Code 4693—Pharmaceutical Goods Mfg. NOC for risks that manufacture goods such as adhesive bandages and pharmaceutical appliances.

Refer to Code 4611 for risks that engage in compounding or blending of drugs, medicines or pharmaceutical preparations but do not engage in the manufacture of ingredients used in these products.

State Addendum
Massachusetts Code 4825 is applied to insureds engaged in serum, anti-toxin or virus manufacturing (Code 5951 is N/A MA). Refer to Code 8018—Store—Wholesale NOC for risks that are principally engaged in the wholesale distribution of drugs, medicines and pharmaceutical ingredients used for the compounding and preparation of prescriptions (Code 8047 is N/A MA).

Rate per $100. of Renumeration: $ 0.93

Construction Exemption Required: No