fbpx
Insurica
Pay Now
Client Login

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

INSURICA
INSURICA

Share This Story

Stay Updated

Subscribe to the INSURICA blog and receive the latest news direct to your inbox.

Subscribe to the blog

Related Blogs

Navigating Spring’s Big 3 Severe Weather Hazards: Floods, Hail and Tornadoes

March 1st, 2024|Blog, Education, Trending|

As spring ushers in warmer weather, it also brings the potential for severe weather events that can impact school communities. Understanding and preparing for floods, hailstorms, and tornadoes are crucial responsibilities for school administrators. Let's explore practical tips to safeguard your school community from these hazards.

Target on Safety: Housekeeping and Ladder Safety

February 29th, 2024|Blog, Construction, Trending|

Housekeeping in the workplace? Yes, but it is much more than just sweeping up or taking out the trash at the end of the day. Housekeeping includes a variety of duties that contribute to keeping our workspace clean and safe.

15 Low- and No-cost Employee Benefits to Offer

February 28th, 2024|Blog, Employee Benefits, Trending|

Employee benefits are the cornerstone of a thriving organization. Perks and benefits are pivotal in enhancing job satisfaction,attraction and retention rates, employee well-being and overall workplace morale. While some organizations may feel constrained by budget limitations, there are numerous low- and no-cost benefits that can significantly impact employee happiness and productivity.

Go to Top