Class Code: 8725

Per NCCI's Scopes Code Description:

Code 8725 is applicable to inventory-counting firms that are hired by others to provide a count or value of inventory for single or multiple locations of a client. The information can be gathered manually with pen and paper, voice recorder, or specialized handheld computers that are usually attached to a belt loop and rest on the thigh of a user for easy data entry. Counts can be completed during business hours or while locations are closed. Businesses using inventory-counting services can range from gasoline stations with a small amount of retail items, to wholesale and department stores of various sizes, to warehouse distributors. These counts can be on a one-time basis or on a regular basis for quarterly review or year-end count and valuation of inventory.

The counts are usually done by a small team of counters and a supervisor, but numerous small groups may be assigned to different areas to complete a count of a large store within a short time.

The information gathered may include, but is not limited to, the following types: quantity count, retail price, specific item descriptions by numerous bar code types, retail price verification versus master price list, fixed asset count of machinery and equipment, and maximum amount of product that can be placed in a given area. Some firms may also attach new inventory labels or bar codes to existing inventory. All of these types of information can be gathered at the same time that the inventory-counting process occurs. Additional information is gathered at the request of the customer, depending on their needs.

Once the information is gathered and compiled, it is sent to the customer on paper, electronically, or downloaded from an insured’s Web site. It can be further manipulated and analyzed by the customer as needed for each location, region, state, or companywide. It is common for the results of the inventory count to be turned over to the customer when the inventory-counting team leaves the premises or within 24 hours.

Related Operations Not Classified to Code 8725:

   
•    Refer to Code 8720 for the inspection of risks for insurance or valuation purposes.
•    Refer to Code 8803 for auditing, accounting, or computer system design or programing.

Rate per $100. of Renumeration: $ 0.35

Construction Exemption Required: No