Back to basics: Understanding the complexities of workers’ compensation insurance

For FedEx Ground Service Providers, there are three primary potential classifications to consider (others may apply depending on business operations):

• The clerical class code applies to those individuals who are NEVER in or around the trucks. They are strictly clerical.
• The governing class applies to drivers and any owners or managers who are ever in or around trucks AT ALL. There are two possible choices that fit under this heading, depending on SP type:
  • There is one class code for linehaul drivers and management
  • There is another class code for pick-up and delivery (P&D) drivers and management

The most common misclassification is with clerical employees. It may seem to make sense that if an employee spends most of his or her time in the office – only pitching in occasionally to drive a route or even move a truck at the terminal – they should be classified as clerical. However, having any exposure to the hazards of the business, even if occasional, does not qualify that employee for the clerical exception.

To ensure you, your employees, and all other officers of the business are classified correctly, ask the following questions:

• Does the officer or employee only perform clerical duties? (Clerical duties are defined as performing general office work in a separate office space away from the hazards of operation.)
• Does the officer or employee ever:
  • Drive a vehicle or directly supervise or train employees in the facility?
  • Perform routine maintenance on vehicles, including fueling, washing, or oil changing?
  • Work as a dispatcher?

Depending on the answers to these questions, the officer or employee may be classified in the “governing” class. 

According to industry standards, an employee or officer cannot be assigned to more than one job classification. If at any time during the policy period, their job duties take them out of a strictly “clerical” classification, that employee must be classified by the “governing” class instead. 

To obtain workers’ compensation coverage and receive quotes from multiple carriers, reach out to a member of your regional account team and they will walk you through your options and help you make an informed decision on which coverage is right for your business.