BLUEFIELD — Employers in West Virginia are encouraged to work with BrickStreet Mutual Insurance to avoid confusion with the new business classification system, officials said.

BrickStreet, the state’s workers’ compensation insurer, contracted with the National Council on Compensation Insurance (NCCI) to become the Mountain State’s classification and rating agent beginning July 1.

Under the previous compensation system, employers had 94 classifications for employees. Under the NCCI system, there are now more than 470, BrickStreet President and Chief Executive Officer Greg Burton said.

“It’s caused a little bit of confusion,” Burton said, explaining the company now wants to “take a step back” to ensure all employers are clear about the new system.

Under the old system, a business may have paid the same workers’ compensation rate for all its employees. For example, Burton said a coal company may have paid the standard mining rate for all employees, even if some were in clerical positions.

The new classifications allow businesses to pay rates based on the job the employee performs.

In the case of a coal company, the business may pay lower rates on some employees, Burton said. Yet other businesses may see a jump in some rates as they classify employees in more specific job roles.

BrickStreet is now receiving a large number of new classifications. “We have 36,000 employers,” Burton said. “We have received an awful lot of information.”

Because of this volume, he said errors were made in inputting the data and by those in the business community.

Burton said BrickStreet “has worked hard” to correct any errors, and will continue to do so.

A dispute resolution process is also in place for employers. “If you don’t agree with the classification, first call BrickStreet,” he said. “If you still don’t agree, you can formally protest.”

Employers are encouraged to watch their mail for a series of mailings from BrickStreet to help clarify the new system and to alert them to date changes for invoices and policy due dates.

Invoices employers expected to receive in mid-May will now be delayed until mid-June. With the invoices, Burton said employers also will receive a letter from the West Virginia Insurance Commission, a timeline of the dispute resolution process and an explanation of the Terrorism Risk Insurance Act.

The June 15 premium due date has been extended to July 13, he said.

In a separate mailing, BrickStreet will send employers an explanation of their new classifications and rates.

The new classifications are “geared to make the system as fair as possible,” Burton said.

“Anytime you undertake something this big” there will be some problems, he said. “We just ask employers to call us if they see something that doesn’t work right.”

— Contact Samantha Perry at sperry@bdtonline.com