Class Code: 8107

Per NCCI's Scopes Code Description:

Code 8107 is applied to insureds engaged in selling new or used machinery of the type which is “not otherwise classified” in the Basic Manual. This classification contemplates the receipt and storage of machinery, parts and accessories, store or yard sales and delivery. The manufacture or fabrication of machinery is not contemplated by Code 8107.

Code 8107 includes parts and accessories departments. Individuals employed in these departments who engage in duties such as waiting on customers, handling parts and taking physical inventories are classified to Code 8107. Employees engaged in these or related duties are not considered clerical employees for classification purposes as they do not meet the requirements for the clerical classification as described in the Basic Manual.

Code 8107 includes demonstration and service or repair operations at or away from the dealer’s premises. Operations such as the erection, installation, disassembly, reassembly or moving of machinery are not contemplated by Code 8107 but are properly classified to Code 3724—Millwright Work, with the exception of operations involving erection, installation, etc., of oil or gas well supplies or equipment, which are classified to the appropriate oil or gas well classification.

Code 8107 contemplates demonstration of products on or away from the premises. Demonstration is described as the practical application or operation of a product. An outside salesperson who demonstrates machinery of the nature described in this scope is engaged in duties not contemplated by Code 8742—Outside Salespersons and is properly classified to Code 8107.

Some machinery dealers contemplated by Code 8107 do not maintain extensive inventories of products sold but only have floor samples on hand. Dealers of this nature may also rely on catalog sales. Machinery purchased is ordered from the factory and shipped either to the dealer or directly to the purchasers.

Barring specific Basic Manual exceptions, rental of machinery or equipment is usually assigned to either Code 8107 or Code 8010—Hardware Store. The Code 8107 risk is distinguished from the Code 8010 risk by the fact that Code 8107 dealers will rent equipment of the type enumerated in this scope while the rental of machinery or equipment of a hand-held nature or the rental of equipment typically used by the home handyman is contemplated by Code 8010. A risk engaged in renting products ordinarily contemplated by Code 8010 that also rents an incidental amount of heavier machinery is classified to Code 8010.

The following is an analysis of the type of machinery and equipment sales contemplated by Code 8107’s phraseologies.

Machinery Dealer NOC: These dealers specialize in the sale or rental of mining machinery, forklift trucks, conveyors, push hand trucks, heavy woodworking machinery, chain saws, stone crushers, printing or bookbinding machinery, ice making machinery, textile machinery, service (gasoline) station equipment, logging equipment such as fellers, backers or skidders, and any other type of machinery not covered by a specific classification that is typically used in manufacturing plants, industrial sites or warehouses.

Contractors’ Machinery Dealer: These dealers specialize in the sale or rental of heavy equipment such as road construction machinery, bulldozers, graders, cranes, telescoping booms and cats. This machinery is typically used at construction sites. The leasing or renting of this equipment without operators is classified to Code 8107. In the event that mobile cranes are leased with operators, the operators are assigned to Code 9534—Mobile Crane Leasing or Rental Service Contractors. In other situations when equipment with operators is provided, the operators are assigned to the classification which would apply if the work were performed by the lessees’ own employees.

Oil or Gas Well Supplies or Equipment Dealers—New: These dealers specialize in the sale of new equipment such as pipe and casings, sucker rods, fittings, commercial pumps and pump jacks, tanks, gas engines, drilling rigs and tools. While the phraseology of this cross-reference classification indicates store or yard only, it is assigned to service employees of dealers who may occasionally demonstrate or replace a defective part of the new equipment after it has been installed in the field by independent contractors. By analogy, mud (drilling fluid) dealers that supply their products to oil or gas well operators are assigned to Code 8107.

Certain Code 8107 operations are designated as “not otherwise classified” (NOC). These NOC operations shall apply to an insured only when no other classification more specifically describes the insured’s operations. The following is a representative list of classifications somewhat related in nature to Code 8107 operations that are not assigned to Code 8107:

8380 Automobile Sales or Service Agency
8116 Farm Machinery Dealer
9534 Mobile Crane Leasing or Rental Service Contractors
8204 Oil or Gas Well Supplies or Equipment Dealers—Used

In addition to this representative list, one should review sources such as the alphabetical index in this manual to determine whether a classification other than Code 8107 or a classification other than one on the above list is applicable to the operations being reviewed for classification purposes.

Note:  Refer to Note listed under Code 8001 for underwriting guidelines that are applicable to stores and dealers.

State Addendum
Massachusetts Code 8107 is applied to insureds engaged in selling new or used machinery of the type that is “not otherwise classified” in the MA Manual.

Refer to MA Manual for requirements regarding assignment to Code 8810—Clerical Office and specific exceptions applicable to the rental of machinery or equipment.

Code 8107 applies to store and yard operations. Operations away from premises, other than demonstration, such as service, repair, erection, installation, disassembly, reassembly or the moving of the machinery, are not contemplated by Code 8107 but are properly classified to Code 3724—Millwright Work.

Refer to Code 8380 for dealers specializing in the sales or rental of forklift trucks, and Code 8010 for those dealers handling chain saws.

Note:  Refer to Note listed under Code 8001 for the approved interpretations applicable to stores and dealers.

Rate per $100. of Renumeration: $ 2.57

Construction Exemption Required: No