Class Code: 8263

Per NCCI's Scopes Code Description:

Code 8263 is applied to dealers engaged in collecting or handling a miscellaneous line of secondhand materials such as enumerated in this classification’s note. When a dealer’s principal type of merchandise sold is ferrous scrap metal, the business is assigned to Code 8265. When a dealer’s principal type of merchandise sold is nonferrous scrap metal, the business is assigned to Code 8500.

Junk dealers contemplated by Code 8263 collect and buy small lots of all types of junk, which they sort and store at their premises until a sufficient volume is on hand for resale to other specialized dealers. The operations vary depending upon the type of junk, i.e., paper stock and rubber that may be shredded or cut and baled. Rags are usually stripped, trimmed, washed, and baled. Bottles are washed, racked, and crated. Metals, both nonferrous and ferrous, in bulk form may be sold as is or they may be compressed and baled in presses for shipping purposes. All of these operations at a single location are contemplated within the scope of this classification, even if they are performed in physically separated areas and there is no interchange of labor.

Refer to Code 8001 for general underwriting guidelines regarding stores, dealers, and recycling operations.

State Addendum
Massachusetts As enumerated in this classification’s note, risks primarily engaged in collecting or handling ferrous scrap metals shall be assigned to Code 8265—Iron or Steel Scrap Dealer. Additionally, risks primarily engaged in collecting or handling nonferrous scrap metals shall be assigned to Code 8500—Metal Scrap Dealer. For the purpose of classification assignment, the term “primarily engaged in collecting or handling” is synonymous with “principal type of merchandise sold.”

Refer to Code 8001 for approved interpretations applicable to stores and dealers.

Rate per $100. of Renumeration: $ 5.34

Construction Exemption Required: No