What is Iron or Steel Merchants Workers Compensation (class code: 8106)?
Iron or steel merchants workers compensation insurance, classified under code 8106, is designed to protect employees working in businesses that buy, sell, or distribute iron and steel products. These operations may involve handling heavy materials, operating machinery, and working in warehouse or yard environments, all of which come with risks of workplace injury. Workers compensation provides coverage for medical expenses and lost wages if an employee is injured on the job.
Who Needs It
Any business involved in the iron and steel trade—whether wholesaling, warehousing, or distributing metal products—should carry workers compensation insurance. This includes:
- Steel service centers
- Scrap metal dealers
- Iron and steel distributors
- Metal processing yards
Even if your state does not mandate coverage for a small number of employees, carrying this insurance helps protect your business from liability and supports injured workers.
What It Typically Covers
Workers compensation for class code 8106 generally includes:
- Medical treatment for workplace injuries or illnesses
- Partial wage replacement during recovery
- Rehabilitation services
- Disability benefits if the injury leads to long-term limitations
- Death benefits for dependents in the event of a fatal accident
Common Exclusions and Limitations
While workers compensation provides broad coverage, there are exclusions. These may include:
- Injuries sustained outside of work
- Self-inflicted injuries
- Injuries resulting from intoxication or illegal activity
- Independent contractors (unless separately covered)
Review your policy details carefully to understand what is and isn't covered.
Factors That Influence Cost
The cost of workers compensation for iron or steel merchants depends on several factors, such as:
- Payroll size and number of employees
- Type of operations and associated risk levels
- Claims history and safety record
- State regulations and base rates
- Experience modification factor (mod rate)
Proof of Insurance & Compliance
Most states require businesses to carry workers compensation and provide proof of coverage. This is typically done through a Certificate of Insurance (COI), which may be requested by clients, vendors, or state agencies. Compliance requirements vary by state, so it's important to stay up to date with local regulations and renew your policy on time.
How to Get a Quote
Protect your workers and your business. Get a workers compensation quote today tailored to your iron or steel operation.
Frequently Asked Questions
What does class code 8106 mean?
Class code 8106 refers to workers compensation insurance for businesses involved in merchandising or distributing iron and steel products.
Are office staff included in this classification?
No, office workers are typically assigned a separate, lower-risk class code and should be listed separately on your policy.
Is workers compensation mandatory for iron merchants?
In most states, yes. Requirements depend on the number of employees and local laws, so check with your state’s department of labor or insurance.
Does this policy cover forklift operators?
Yes, if they are direct employees of the business, forklift operators working in iron or steel yards are generally covered under code 8106.
Can I include independent contractors under my policy?
Typically, independent contractors are not covered unless you specifically add them. Misclassification can lead to penalties, so consult your insurer.
Still have questions? Talk to a local insurance expert.