Class Code 7198
Parcel Delivery Companies; Armored Transport Services
Class Code 7198 applies to California employers that operate parcel delivery services and armored transport operations. It covers on‑road delivery and courier work plus cash/valuables transport and related depot duties. The approved pure premium rate for September 1, 2026 is $10.620 per $100 of payroll, which reflects the elevated driving, lifting and security risks in these businesses.
What Class Code 7198 Covers
This classification includes firms that perform door‑to‑door parcel and package delivery (last‑mile carriers), scheduled courier routes, pickup and delivery services, and armored car companies that move cash, checks and other valuables. Covered employees typically perform driving and on‑route delivery work in light and medium vans or armored vehicles, secure handling of currency and valuables at vaults or depots, and loading/unloading at customer locations and small terminal facilities. Operations include residential and commercial deliveries, timed courier services, cash‑in‑transit runs between businesses and banks, and depot/vault handling tasks such as sorting, securing and manifesting shipments. The code applies whether the work is performed by single drivers, two‑person armored teams, or depot staff who prepare, secure and transfer shipments between vehicles.
Who It Applies To
- Last‑mile parcel delivery drivers and route couriers
- Armored car drivers and armed/unarmed security guards transporting cash
- Depot/vault attendants who sort, manifest and secure packages or cash
- Two‑person cash‑in‑transit teams and vehicle loaders
- Dispatchers and route planners tied directly to delivery operations
Common Job Duties
- Operating light to medium delivery vans and armored trucks on city streets and highways
- Loading and unloading packages or cash bags at customer sites and vaults
- Manually lifting, carrying and placing packages up and down stairs and porches
- Securing, logging and maintaining chain‑of‑custody for cash, valuables and high‑value parcels
- Conducting pre‑trip and post‑trip vehicle inspections and basic vehicle maintenance checks
- Interacting with customers for deliveries, collecting signatures and verifying IDs
Common Injury Risks
Understanding the $10.620 Rate
The pure premium rate of $10.620 per $100 of payroll is the base cost intended to cover expected claim costs for this class. To estimate base premium multiply total payroll for employees in this class by 0.10620 (for example, $100,000 payroll x 0.10620 = $10,620). Final policy premium is adjusted by your companys experience modification, carrier loss cost multipliers, premium discounts, state assessments, and any deductible or retrospective rating programs.
Cal/OSHA Compliance Requirements
California employers must maintain an effective Injury and Illness Prevention Program (IIPP) that addresses driving safety, manual handling and workplace violence prevention for cash handlers. Outdoor delivery crews require Cal/OSHA heat illness prevention measures, hydration and rest breaks. In addition to Cal/OSHA, armored transport operations must comply with licensing and security standards (BSIS for security guard licensing) and applicable federal/state transportation rules (e.g., commercial vehicle regs and hours‑of‑service) that intersect with workplace safety obligations.
How Key HR Helps Employers Under Class Code 7198
A PEO like Key HR helps employers in this class control workers' comp costs by centralizing claims management, implementing targeted driver and lifting safety programs, and deploying telematics and route‑optimization tools to reduce crash exposure. Key HR can also manage payroll classification accuracy, assist with licensing and background check compliance for armored staff, and run return‑to‑work programs that shorten claim durations and improve experience modifications.
Get a QuoteFrequently Asked Questions
Do independent contractors who deliver for our company fall under Class Code 7198?
Classification depends on employment status. Truly independent contractors are not payroll for workers' comp, but misclassifying employees as contractors creates significant liability. A PEO can help audit engagement models and ensure payroll and classifications are correct to avoid audits and back premiums.
We run both parcel delivery and armored cash services. Can one policy cover both operations?
Yes, but carriers will expect accurate payroll splits and operational detail because armored transport and parcel delivery have different loss profiles. Properly allocating payroll to Class Code 7198 and maintaining clear job descriptions and controls helps ensure correct pricing and reduces audit surprises.
What practical steps most reduce workers' comp claims and premiums for this class?
Implement a written driver safety program with telematics, enforce seat belt and pre‑trip inspections, require safe lifting practices and two‑person handling for heavy items, use secure cash‑handling protocols and robbery response training for armored teams, and maintain an active return‑to‑work program to bring injured workers back on light duty quickly.
Quick Facts
- Class Code
- 7198
- Classification
- Parcel Delivery Companies; Armored Transport Services
- Pure Premium Rate
- $10.620 / $100 payroll
- Effective Date
- September 1, 2026
- Source
- WCIRB Approved Filing
Manage Workers' Comp Through a PEO
Key HR provides pay-as-you-go workers' comp for California employers — no large deposits, no audits, better rates.
Get a Quoteor call (800) 922-4133Ready to Simplify Workers' Comp for Class Code 7198?
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