Insurance Comparison
NCCI Class Code 0106 vs 2702 for Tree Service Workers' Comp
Understand the difference between NCCI class codes 0106 and 2702, how they affect your workers' comp premium, and how to ensure your tree service employees are properly classified.
| Dimension | NCCI Code 0106 — Tree Pruning, Trimming, Removal | NCCI Code 2702 — Logging or Lumbering |
|---|---|---|
| Official Description | Tree Pruning, Trimming, Removal & Related Services — includes stump removal and arborist services. | Logging or Lumbering & Drivers — includes felling, bucking, skidding, and hauling timber in forest settings. |
| Base Rate Range | Approximately $15-$30+ per $100 of payroll depending on state. Texas: ~$18.50; Florida: ~$22.00; California: ~$28.00. | Approximately $25-$45+ per $100 of payroll depending on state. Logging is one of the highest-rated class codes in workers' comp. |
| Typical Operations | Residential and commercial tree trimming, pruning, removal, stump grinding, cabling and bracing, tree health assessments. | Harvesting standing timber for commercial sale, log hauling, skidding operations, timber cruising, forest thinning for lumber production. |
| Work Setting | Residential yards, commercial properties, roadsides, utility rights-of-way, parks, and campuses. | Forests, timberlands, logging sites — typically remote, unimproved settings with heavy equipment. |
| Equipment Involved | Chain saws, chippers, stump grinders, aerial lifts, bucket trucks, cranes — used in proximity to structures and people. | Feller bunchers, skidders, log trucks, delimbers, forwarders — heavy forestry machinery in unpopulated areas. |
| Premium Impact (Example) | A tree service with $400,000 payroll in Texas at $18.50/$100: base premium ≈ $74,000 before experience mod. | The same $400,000 payroll classified as logging at $30/$100: base premium ≈ $120,000 before experience mod — a $46,000 difference. |
| Misclassification Risk | Tree services that also perform land clearing or lot clearing may be reclassified to a higher-rated code if the auditor determines the work is more akin to logging. | Logging operations that also do residential tree removal may be able to split payroll to 0106 for that portion of work — but only with proper documentation. |
| Audit Sensitivity | Auditors look at the nature of the work, not just the company description. If a tree service derives more than incidental revenue from land clearing or timber harvesting, payroll may be reclassified. | Companies classified as 2702 that also do residential tree work should document payroll by job type to support splitting to lower-rated codes at audit. |
| Related Companion Codes | 0042 (Landscape Gardening) for ground crew not climbing or operating heavy equipment. Clerical staff use 8810. | 2709 (Logging or Lumbering — Reforestation) for planting operations. Sawmill operations use separate codes. |
Official Description
NCCI Code 0106 — Tree Pruning, Trimming, Removal
Tree Pruning, Trimming, Removal & Related Services — includes stump removal and arborist services.
NCCI Code 2702 — Logging or Lumbering
Logging or Lumbering & Drivers — includes felling, bucking, skidding, and hauling timber in forest settings.
Base Rate Range
NCCI Code 0106 — Tree Pruning, Trimming, Removal
Approximately $15-$30+ per $100 of payroll depending on state. Texas: ~$18.50; Florida: ~$22.00; California: ~$28.00.
NCCI Code 2702 — Logging or Lumbering
Approximately $25-$45+ per $100 of payroll depending on state. Logging is one of the highest-rated class codes in workers' comp.
Typical Operations
NCCI Code 0106 — Tree Pruning, Trimming, Removal
Residential and commercial tree trimming, pruning, removal, stump grinding, cabling and bracing, tree health assessments.
NCCI Code 2702 — Logging or Lumbering
Harvesting standing timber for commercial sale, log hauling, skidding operations, timber cruising, forest thinning for lumber production.
Work Setting
NCCI Code 0106 — Tree Pruning, Trimming, Removal
Residential yards, commercial properties, roadsides, utility rights-of-way, parks, and campuses.
NCCI Code 2702 — Logging or Lumbering
Forests, timberlands, logging sites — typically remote, unimproved settings with heavy equipment.
Equipment Involved
NCCI Code 0106 — Tree Pruning, Trimming, Removal
Chain saws, chippers, stump grinders, aerial lifts, bucket trucks, cranes — used in proximity to structures and people.
NCCI Code 2702 — Logging or Lumbering
Feller bunchers, skidders, log trucks, delimbers, forwarders — heavy forestry machinery in unpopulated areas.
Premium Impact (Example)
NCCI Code 0106 — Tree Pruning, Trimming, Removal
A tree service with $400,000 payroll in Texas at $18.50/$100: base premium ≈ $74,000 before experience mod.
NCCI Code 2702 — Logging or Lumbering
The same $400,000 payroll classified as logging at $30/$100: base premium ≈ $120,000 before experience mod — a $46,000 difference.
Misclassification Risk
NCCI Code 0106 — Tree Pruning, Trimming, Removal
Tree services that also perform land clearing or lot clearing may be reclassified to a higher-rated code if the auditor determines the work is more akin to logging.
NCCI Code 2702 — Logging or Lumbering
Logging operations that also do residential tree removal may be able to split payroll to 0106 for that portion of work — but only with proper documentation.
Audit Sensitivity
NCCI Code 0106 — Tree Pruning, Trimming, Removal
Auditors look at the nature of the work, not just the company description. If a tree service derives more than incidental revenue from land clearing or timber harvesting, payroll may be reclassified.
NCCI Code 2702 — Logging or Lumbering
Companies classified as 2702 that also do residential tree work should document payroll by job type to support splitting to lower-rated codes at audit.
Related Companion Codes
NCCI Code 0106 — Tree Pruning, Trimming, Removal
0042 (Landscape Gardening) for ground crew not climbing or operating heavy equipment. Clerical staff use 8810.
NCCI Code 2702 — Logging or Lumbering
2709 (Logging or Lumbering — Reforestation) for planting operations. Sawmill operations use separate codes.
What Tree Service Companies Need to Know
Workers' compensation class codes are the single biggest factor in your tree service's comp premium, and the difference between being classified under NCCI code 0106 (Tree Pruning, Trimming, Removal & Related Services) versus 2702 (Logging or Lumbering) can mean tens of thousands of dollars per year. Both codes involve cutting trees, but they cover fundamentally different operations — and getting the classification wrong can be devastating to your bottom line.
NCCI code 0106 applies to tree service companies that prune, trim, remove, and care for trees in residential, commercial, and municipal settings. This includes stump grinding, cabling and bracing, tree health assessments, and emergency storm damage removal. The work is performed around structures, vehicles, power lines, and people. Base rates for 0106 typically range from $15 to $30 per $100 of payroll depending on the state — already among the highest in the workers' comp system because of the inherent dangers of climbing, chain saw use, and working at height.
NCCI code 2702 covers logging and lumbering operations — the harvesting of standing timber for commercial sale or processing. This is forest-based work involving heavy machinery like feller bunchers, skidders, and log trucks. Base rates for 2702 are even higher, typically $25 to $45 per $100 of payroll, because logging consistently ranks among the most dangerous occupations in the United States with a fatality rate of approximately 82 per 100,000 workers.
The classification conflict arises when tree services diversify into land clearing, lot clearing, or timber harvesting. If your company takes a contract to clear 20 acres for a new subdivision and you are selling the timber, a workers' comp auditor may reclassify that payroll from 0106 to 2702 — or worse, reclassify your entire payroll if timber harvesting becomes a significant portion of revenue. The premium difference is staggering: on $400,000 of payroll, the difference between an $18.50 rate (0106) and a $30.00 rate (2702) is $46,000 per year.
To protect your classification, maintain clear separation between tree service work and any land clearing or timber operations. Keep separate job records documenting the nature of each project, track payroll by job type, and work with your agent and auditor to ensure proper code splitting when you perform both types of work. If you do both residential tree care and land clearing, you may be able to assign payroll to 0106 for the tree care portion and a land clearing code for the rest — but only with meticulous documentation. Never assume your carrier or auditor will classify you favorably without supporting records.
Frequently Asked Questions
My tree service does some land clearing. Will I be reclassified to the logging code?
Not necessarily, but it depends on the nature and volume of the work. If land clearing is incidental to your primary tree service operations, you may retain the 0106 classification. If land clearing or timber harvesting becomes a significant revenue source, the auditor may reclassify that payroll to a higher-rated code. Keep detailed job records showing the nature of each project and discuss classification proactively with your agent before the audit.
Can I split payroll between 0106 and a lower-rated code for my ground crew?
Yes. Employees who perform only ground-level work — raking, loading brush, traffic control — may be classifiable under NCCI code 0042 (Landscape Gardening) at significantly lower rates ($4-$8 per $100 of payroll). However, the employee must never climb, operate chain saws, or perform aerial work. If a ground worker occasionally climbs, their entire payroll defaults to 0106. Maintain clear job descriptions and time records to support the split.
What is the experience modification factor and how does it affect my 0106 rate?
The experience modification factor (EMR or e-mod) is a multiplier applied to your base rate based on your company's loss history compared to the average for your class code. An EMR of 1.0 means average. Below 1.0 (e.g., 0.80) means your losses are better than average, reducing your premium by 20%. Above 1.0 (e.g., 1.25) means worse than average, increasing premium by 25%. For tree services with high base rates under 0106, even small EMR changes create large dollar swings — a 0.10 improvement on $400,000 payroll at $18.50/$100 saves $7,400.
Are NCCI codes the same in every state?
No. While NCCI administers workers' comp classification in 38 states, some states operate their own rating bureaus with different code numbers and descriptions. California (WCIRB), New York, New Jersey, Delaware, and Pennsylvania use independent classification systems. The concept is similar but the specific codes and rates differ. For example, California uses code 0106 but its rate structure is set by the WCIRB, not NCCI.