The Contracting Classification Premium Adjustment Program (CCPAP) is a discount program that can reduce the amount that an employer pays in workers’ compensation premiums.
How does the CCPAP work?
The CCPAP was developed to provide a premium credit for employers in the contracting and construction industry who pay their employees higher than average wages. The CCPAP discount is calculated using the hourly rate of employees who are classified within the construction industry’s contracting class codes.
The system that is used to calculate workers’ compensation premiums groups employees according to risk. For each classification, the employer must pay a certain amount of workers’ compensation premiums based on every $100 of payroll. Since high wages amount to higher workers’ compensation premiums, employers use the CCPAP to lower their premiums to an amount more level with what they would be paying if they paid their employees less. With the CCPAP, employers aren’t penalized for paying their employees higher than average wages.
How does an employer apply for the CCPAP?
An employer must complete the CCPAP application and return it to the National Council on Compensation Insurance (NCCI) within 180 days from either the effective date or the anniversary rating date of the workers’ compensation policy. The CCPAP must be applied for every year.
When completing the application, the employer must determine which calendar quarter data to use. The employer will also be asked to provide a description of operations or its classification, the appropriate classification code, the total wages paid and the total hours worked.
Once the application is received by the NCCI, the average hourly wage will be computed and the CCPAP credit will be generated according to the rules for the state in which the application is being made. The insurance company will then be notified, and the credit will be applied to the policy.
In which states is the CCPAP available?
The CCPAP is not a national program. Each participating state has its own rules, which include qualification and calculation of credits. Some states may also have an hourly pay rate threshold for entry into this program.
To see if the CCPAP is available for your business, and for more information about the program and the potential to lower your workers’ compensation premiums, contact a team member near you at INSURICA.com/our-team today.
About the Author
Share This Story
Related Blogs
Five Strategies for Reducing Workers’ Compensation Costs
When a company experiences significant increases in workers’ compensation costs, it usually triggers internal activities aimed at reducing insurance costs and spending. The key to spending fewer dollars is more than just stopping a few accidents; it is having a sound safety program designed to continuously improve. This is where a safety program that, at a minimum, is compliant with the Occupational Safety and Health Administration (OSHA) standards can yield significant savings for by reducing injuries and illnesses, saving workers’ compensation dollars.
Hidden Risks of Summer School: Operational Safety Strategies Schools Can’t Ignore
Summer school risk management is essential to ensuring student and staff safety during the warm months. Many districts overlook the unique challenges tied to summer school risk management. Often, summer sessions operate in secondary campuses, under temporary staffing, and with reduced oversight—making them vulnerable. Proactive planning is essential to keep students and staff safe in environments that may not be designed for extended year-round use.
Navigating Cybersecurity Challenges in the Construction Industry
The construction industry is continuously moving toward digitization, adopting advanced technology such as artificial intelligence, the Internet of Things (IoT) and Building Information Modeling software. These innovations help to automate tasks, reduce waste and improve efficiency, productivity and safety.