This workers compensation insurance helps protect auto dealer salesmen if they experience a work-related injury or illness. Because their work environment can include showroom floors, parking lots, service areas, and test drives on public roads, there is a risk of slips, falls, auto accidents, and other on-the-job injuries. With the right coverage in place, eligible employees may receive medical benefits, rehabilitation support, and partial wage replacement if they are injured while performing their job duties.
What is Auto Dealers Salesmen Workers Compensation (class code: 8748)?
Workers compensation class code 8748 is used by insurers to categorize payroll and exposure for employees who primarily work as automobile salespeople. These employees typically:
- Work on the showroom floor or lot to sell or lease vehicles
- Accompany customers on test drives
- Prepare sales paperwork and contracts
- Attend off-site events or promotions related to auto sales
Class codes help insurance carriers estimate risk and calculate premiums. Code 8748 is generally different from classifications for mechanics, body shop workers, or administrative staff, who may be assigned to other codes based on their job duties.
Who needs this coverage?
Workers compensation coverage for class code 8748 is typically needed by:
- New car dealerships
- Used car lots and independent auto dealers
- Dealership groups with multiple locations
- Auto brokers and specialty vehicle dealers that employ sales staff
Most states require employers with a certain number of employees to carry workers compensation insurance. Dealership owners should confirm how their sales staff are classified and covered, and consult with a licensed insurance professional about state-specific rules.
What does workers compensation for class code 8748 typically cover?
While policy details vary by insurer and state, workers compensation insurance for auto dealer salesmen commonly includes:
- Medical expenses for covered work-related injuries or illnesses, such as emergency care, doctor visits, and hospital stays
- Rehabilitation and therapy to help an injured employee recover and return to work, when covered by the policy
- Partial wage replacement if an employee cannot work or can only work in a limited capacity due to a covered injury
- Benefits for permanent impairment when allowed under applicable state law and policy terms
- Employer liability protection for certain covered workplace injury claims, subject to policy language and state law
Coverage usually applies when the injury or illness arises out of and in the course of employment, such as injuries during test drives, slips on the lot, or accidents while attending dealership-related events.
Common exclusions and limitations
Workers compensation policies have exclusions and limits that can vary by carrier and jurisdiction. Common examples may include:
- Injuries that occur while an employee is under the influence of drugs or alcohol
- Self-inflicted injuries or those resulting from horseplay
- Injuries that happen outside the scope of employment
- Claims not reported within required time frames
Policy language and state law determine what is covered. Employers should review their policy and work with a licensed agent or broker for guidance.
Factors that influence cost
The cost of workers compensation coverage for class code 8748 is influenced by several factors, including:
- Payroll for employees classified under 8748
- Claims history and prior loss experience
- Safety programs and risk management practices at the dealership
- State and local regulations and benefit requirements
- Insurer underwriting guidelines and rating plans
Because every business is different, premiums are usually calculated individually based on the dealership’s specific operations and risk profile.
Proof of insurance and compliance
Dealers may need to provide proof of workers compensation insurance to state agencies, lenders, landlords, or business partners. Proof often takes the form of a certificate of insurance issued by the carrier or agent.
Requirements for workers compensation coverage and class code usage vary by state. Employers should verify their obligations with the appropriate state agency and rely on a licensed insurance professional for help structuring coverage.
How to get a workers compensation quote
To get a workers compensation quote for auto dealer salesmen under class code 8748, be prepared to share details such as your total payroll, number of employees, job duties, and any prior claims. An insurance professional can then help you compare options and align your coverage with your dealership’s needs.
To explore coverage options for your auto dealership sales staff, you can request a workers compensation quote online through our quick form: get a workers compensation quote.
Frequently Asked Questions
What does workers compensation class code 8748 mean for my dealership?
Class code 8748 is used to classify employees who primarily work as auto dealer salesmen. It helps insurers evaluate risk and set premiums for workers compensation coverage related to those sales activities.
Are test drive injuries covered under class code 8748?
In many cases, injuries that occur during a work-related test drive may be considered for coverage under workers compensation, subject to policy terms and state law. Coverage decisions depend on the specific circumstances of the incident.
Can one employee be assigned to more than one class code?
Some employees perform multiple job duties, such as sales and light service work. In certain situations, payroll may be divided among appropriate class codes, but this must follow insurer and state rules. An insurance professional can help determine the correct approach.
Do part-time or commission-only salespeople need workers compensation coverage?
Many states require coverage for employees regardless of whether they are full-time, part-time, or paid on commission. However, rules differ by state, so employers should check local requirements and consult a licensed agent.
How can I help reduce workers compensation claims for my sales staff?
Dealerships can promote safety by training sales staff on safe test drive procedures, proper footwear on the lot, awareness in service areas, and prompt reporting of hazards and incidents. Strong safety practices may also help improve long-term claims experience.
Still have questions? Talk to a local insurance expert.