Class 8107
Code 8107 is applied to insureds engaged in selling new or used machinery of the type which is “not otherwise classified” in the MA Manual. This classification contemplates the receipt and storage of machinery, parts and accessories, store or yard sales and delivery. The manufacture or fabrication of machinery is not contemplated by Code 8107.
Code 8107 includes parts and accessories departments. Individuals employed in these departments who engage in duties such as waiting on customers, handling parts and taking physical inventories are classified to Code 8107. Employees engaged in these or related duties are not considered clerical employees for classification purposes as they do not meet the requirements for the clerical classification as described in the MA Manual.
Code 8107 applies to store and yard operations. Operations away from premises, other than demonstration, such as service, repair, erection, installation, disassembly, reassembly or the moving of the machinery, are not contemplated by Code 8107 but are properly classified to Code 3724—Millwright Work.
Code 8107 contemplates demonstration of products on or away from the premises. Demonstration is described as the practical application or operation of a product. An outside salesperson who demonstrates machinery of the nature described in this scope is engaged in duties not contemplated by Code 8742—Outside Salespersons and is properly classified to Code 8107.
Some machinery dealers contemplated by Code 8107 do not maintain extensive inventories of products sold but only have floor samples on hand. Dealers of this nature may also rely on catalog sales. Machinery purchased is ordered from the factory and shipped either to the dealer or directly to the purchasers.
Barring specific MA Manual exceptions, rental of machinery or equipment is usually assigned to either Code 8107 or Code 8010—Hardware Store. The Code 8107 risk is distinguished from the Code 8010 risk by the fact that Code 8107 dealers will rent equipment of the type enumerated in this scope while the rental of machinery or equipment of a hand-held nature or the rental of equipment typically used by the home handyman is contemplated by Code 8010. A risk engaged in renting products ordinarily contemplated by Code 8010 that also rents an incidental amount of heavier machinery is classified to Code 8010.
The following is an analysis of the type of machinery and equipment sales contemplated by Code 8107’s phraseologies.
Machinery Dealer NOC: These dealers specialize in the sale or rental of mining machinery, conveyors, heavy woodworking machinery, stone crushers, printing or bookbinding machinery, ice making machinery, textile machinery, service (gasoline) station equipment, logging equipment such as fellers, backers or skidders, and any other type of machinery not covered by a specific classification that is typically used in manufacturing plants, industrial sites or warehouses.
Contractors’ Machinery Dealer: These dealers specialize in the sale or rental of heavy equipment such as road construction machinery, bulldozers, graders, cranes, telescoping booms and cats. This machinery is typically used at construction sites. The leasing or renting of this equipment without operators is classified to Code 8107. In the event that mobile cranes are leased with operators, the operators are assigned to Code 9534—Mobile Crane Leasing or Rental Service Contractors. In other situations when equipment with operators is provided, the operators are assigned to the classification which would apply if the work were performed by the lessees’ own employees.
Oil or Gas Well Supplies or Equipment Dealers—New: These dealers specialize in the sale of new equipment such as pipe and casings, sucker rods, fittings, commercial pumps and pump jacks, tanks, gas engines, drilling rigs and tools. While the phraseology of this cross-reference classification indicates store or yard only, it is assigned to service employees of dealers who may occasionally demonstrate or replace a defective part of the new equipment after it has been installed in the field by independent contractors. By analogy, mud (drilling fluid) dealers that supply their products to oil or gas well operators are assigned to Code 8107.
Refer to Code 8116 for Farm Machinery Dealers.
Refer to Code 8380 for dealers specializing in the sales or rental of forklift trucks, and Code 8010 for those dealers handling chain saws.
Refer to Note listed under Code 8001 for the approved interpretations applicable to stores and dealers.
Class 8107
Applies to store and yard operations. Operations away from premises, other than demonstration, to be separately rated. Mobile crane leasing or rental shall be assigned to Code 9534.
The operations of employers renting or leasing contractors’ equipment to others shall be classified in the following manner:
(1) If no operator is provided - assign to Code 8107 Machinery Dealers.
(2) If operators are provided - assign the operators to the classification which would apply if the work were performed by the lessee’s own employees. Refer to Part Two - Classifications for Mobile Crane Leasing or Rental with operators.
Includes demonstration.