Occupation Class in Liability Insurance

Occupation Class in Liability Insurance An underwriting category in which insureds are placed based on their specific, customary job dutie. Less hazardous jobs are grouped, while riskier ones join together to form different occupational classes. Your occupation class determines the premiums you have to pay for disability insurance. In general, higher occupation classes have a lower risk of becoming disabled, require more education, and have a higher earned income. As you move down the occupation classification scale, jobs require more physical exertion, less skill, and have a higher absenteeism rate. Most companies offer five different occupation classes from least hazardous to most: 4A, 3A, 2A, A, and B. Some also have class C, which is even more hazardous than B. 4A: Accountants Actuaries Architects Computer consultants, analysts, and programmers Dental specialists Most engineers with consulting and office duties only Most executives with consulting and office duties only Lawyers Optometrists Physicians 3A: Administrative assistants Bank tellers and managers Bookkeepers Chiropractors Clerks Librarians Mortgage brokers Occupational therapists Opticians Paralegals Photographers Physiotherapists Receptionists Speech therapists Teachers Travel agents 2A Accountants Actuaries Architects Computer consultants, analysts, and programmers Dental specialists Most engineers with consulting and office duties only Most executives with consulting and office duties only Lawyers Optometrists Physicians 2A: Acupuncturists Car salespeople Commercial realtors Computer technicians Event planners Farm owners Florists Health inspectors Home inspectors Insurance adjusters Midwives Registered massage therapists Registered nurses Parole officers Reporters Salespeople and clerks with sales duties only Social workers A: Bakers Bus drivers Bylaw enforcement officers Car mechanics Chefs Dental hygienists and assistants Dog trainers Driving instructors Electricians Mental health counsellors Music teachers working from home Plumbers Property managers Registered nursing assistant Residential realtors Servers Unarmed security guards B: Ambulance drivers Armed security guards Barbers and hairdressers Bartenders Carpenters Cement and concrete workers Cleaners and janitors Contractors Drivers (long-haul or heavy vehicle) Drywallers Estheticians Firefighters Forklift and heavy equipment operators Garbage truck drivers Lifeguards Paramedics Personal trainers Police officers Prison guards Roofers Swimming instructors Yoga instructors Uninsurable occupations don’t fall under any of these occupation classes. Although some of these jobs have unusual physical hazards (e.g. taxi drivers, flight attendants, martial arts instructors), some are uninsurable because of a high degree of job instability (e.g. actors, writers, models) The question is what if you change job? As your career progresses, you may work in a new occupation that is less hazardous than your previous job. In this case, you can notify the insurance company to upgrade your occupation class to a higher one. This helps you save on the cost of your disability insurance policy. However, the opposite isn’t true. Therefore, you don’t need to notify the insurance company if you change to a more hazardous job. So you can keep paying lower costs for your disability insurance policy even though your new job may be much riskier #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful