Class Code: 8265

Per NCCI's Scopes Code Description:

Code 8265 is applied to dealers when the principal type of merchandise sold is ferrous scrap metal for resale to others. Such scrap iron or steel would include any metal alloy that is primarily composed of iron as well as the varieties of steel, whether they are carbon steel or alloys of steel including stainless steel. These dealers usually do not engage in door-to-door collection of their scrap but buy graded scrap iron or steel from junk dealers and independent concerns engaged in wrecking steel structures. The operations may involve torch cutting for reduction purposes, not for the salvage of parts. The reduced scrap may then be compressed and baled in presses for shipment to blast furnace operators and steel mills for recovery. In cases where these scrap iron or steel dealers merchandise new iron or steel supplies at the same location, the entire operations are appropriately assigned to this classification. Metal shredding plants wherein a fully automatic mill reduces stripped automobiles, refrigerators, boilers, etc., to small fragments in a matter of seconds and then magnetically separates the ferrous scrap from the nonferrous scrap and foreign matter, are assigned by analogy to Code 8265, as are specialists who travel from yard to yard compressing and baling scrap metal by use of a portable press. Such specialists may work on a fee or percentage basis or they may purchase the scrap for resale to independent shredding plants.

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

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

Rate per $100. of Renumeration: $ 3.76

Construction Exemption Required: No