Use The Executive Supervisor Classfication Rules (Code 5606)

Let’s shift attention to the classification code for executive supervisor. This is a favorable class code for an owner of a building company because the cost is much less than the residential carpentry classification. For example, in South Carolina, one carrier’s current rate for executive supervisor is $3.73 per $100 of payroll whereas their rate for residential carpentry is $19.51 per $100 of payroll. The classification rules published by NCCI are a bit strict on when the executive supervisor classification can be used and the auditors from the insurance carriers often try to force what I consider to be true executive supervisors into the more expensive residential carpentry classification.

Under the technical classification rules, an executive supervisor spends his day arranging for delivery of materials, the scheduling of subs, and briefly visits each job site no more than once per day to inspect the work of the subs. This is a brief summary and oversimplification of the rule, but is a good way to understand it. If you tell the auditor that your executive supervisor spends a lot of time on the job site and that he personally supervises the work, he will be reclassified as residential carpentry and this will cost you a lot of money.