Class Code: 8116

Per NCCI's Scopes Code Description:

Code 8116 is applied to wholesale or retail dealers engaged in selling new or secondhand farm machinery such as, but not limited to, tractors and sowing, furrowing, seeding, harvesting, baling and fertilizing machinery. Some dealers do not maintain on-premises inventories for sale. Customers make their selections from showroom samples or catalogs. The machinery is then ordered from the factory and shipped either to the dealer or directly to the purchaser.

Code 8116 contemplates the receipt and storage of the machinery, parts and accessories departments; counter, store or yard sales delivery; and demonstration of machinery and service and repair operations at or away from the dealer’s premises.

As stated above, Code 8116 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 8116. 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 8116’s phraseology includes the term, “all operations.” Per Basic Manual definition, all operations excludes Standard Exception classifications. As such, employees who engage in outside sales work which does not involve demonstration of machinery are classified to Code 8742—Outside Salespersons, a Standard Exception classification. Outside salespersons who demonstrate machinery are classified to Code 8116.

The leasing or renting of farm machinery without operators also falls within the scope of Code 8116. However, if operators are provided, they are assigned to the classification that would apply if the work were performed by the lessees’ own employees.

Certain insureds may engage in the sale of both farm machinery and other industrial-type machinery. Under these circumstances, either Code 8116 or Code 8107—Machinery Dealer NOC is assigned to the business. The classification assignment is determined based on the principal operation of the insured.

Refer to Code 3507 for farm (agricultural) machinery manufacturing. Refer to Code 8107 for logging equipment dealers.

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

Rate per $100. of Renumeration: $ 2.23

Construction Exemption Required: No