Workers' Compensation Insurance for Welding Businesses: A Complete Guide
Workers' compensation insurance for welding businesses protects your workers from job-related injuries. Whether your welding business operates in a shop or out in the field, using the right class code can make a big difference in your premiums while ensuring that your workers are properly covered.
What are Class Codes and why do they matter?
Class codes are four-digit numbers that are used to refe specific details about job roles. These numbers are assigned by the National Council on Compensation Insurance (NCCI), which tracks injury statistics and assigns a risk rating based on that data. This helps insurance companies determine workers' comp rates for welding businesses.
Class codes for workers' compensation insurance for welding businesses matter because they ensure businesses are paying the right amount for coverage, while protecting workers from the risks associated with welding jobs.
How are class codes determined for welding businesses?
Class codes for welding businesses are based on injury data specific to each state. The NCCI analyzes welding accidents in different states to determine risk ratings. Welding can be hazardous due to hot equipment, sparks, and heavy materials, leading to higher risk ratings in states with more injuries.
If welding-related injuries increase in a state, the risk rating will go up, raising premiums. Fewer injuries could lower the premiums. The NCCI reviews and updates these ratings annually, adjusting premiums based on state-specific data.
Common Class Codes for Welding Businesses
Class Code 3365
This code applies to all types of welding businesses, including those involved in structural welding, fabrication, and other forms of metalworking. It covers both shop-based and fieldwork, including welding operations like bridge welding and pipe welding.
Class Code 3040
For ornamental welding or non-structural welding, this code is used. It typically applies to businesses involved in making decorative metalwork and is generally used for jobs that involve less risk than structural welding.
State-Specific Class Codes for Welding Businesses
Welding businesses can face different workers' comp codes depending on the state.
Here are some examples for welding services:
Class Code 0857 - Pennsylvania and Delaware
In PA and DE, welding businesses use Class Code 0857. This code applies to welding and cutting operations in shops or on-site, including both structural and ornamental welding.
How do Welder Class Codes affect insurance rates?
Class codes determine how risky a job is and, consequently, how much the business will pay for workers' comp insurance. Jobs that are more hazardous typically carry higher premiums.
For welders, the insurance rate will vary depending on the state and job specifics. The typical rate is $3.97 per $100 of payroll.
Welding is a physically demanding and sometimes hazardous job, which results in a higher premium. Rates from selected states are shown in the chart below.
Welders (Class Code 3365) Rates per State – 2025
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These starting rates are based on the general risk for welding businesses, but your actual premium will depend on your specific risks.
Insurance companies adjust your premiums using an experience modifier (ExMod), which is based on your claims history.
If your ExMod is 0.95, you’ll see lower premiums compared to the average for other welding businesses. If your ExMod is above 1, your premiums will be higher due to more claims.
Reducing on-the-job injuries and improving safety will help keep your ExMod low, which can save you money.
Want to see how these rates affect your business? Take a look at our Guide to Workers' Compensation Insurance for Welders Cost for more details.
Managing Risk with a strong Safety Program
Welding involves physical risks, from burns to respiratory issues due to fumes and hot equipment. A proactive safety approach helps to mitigate these risks and reduce workers' comp premiums.
Tips for reducing common injuries in Welding Businesses:
- PPE Protection: Provide welders with proper protective gear, such as welding helmets, gloves, and flame-resistant clothing, to prevent burns, eye injuries, and exposure to dangerous fumes.
- Ergonomics for Welders: Offer ergonomic workstations to reduce strain from long hours of repetitive work and heavy lifting, helping to prevent musculoskeletal injuries.
- Safety Equipment Inspections: Regularly inspect welding equipment and machines to ensure they are in good working condition, reducing the risk of accidents due to faulty tools.
Find the right Workers’ Comp for your Business
Looking for the right workers' comp coverage for your welding business? Start an instant quote now or call 886-338-8823 for expert advice. We specialize in providing workers' comp for welding businesses and can make sure you get the coverage that fits your needs.
Note: The information provided in this blog is intended for general informational purposes only and is not a substitute for professional legal or insurance advice. Laws and regulations regarding workers' compensation insurance are complex and vary by state and by specific circumstances. Therefore, readers are encouraged to consult with a qualified legal or insurance professional to obtain advice with respect to any particular issue or problem they might have.
Mordechai Kamenetsky, co-founder and lead agent of Kickstand, is recognized as an expert in workers' compensation. He is passionate about helping small businesses manage risks and lower their workers' comp costs. In his articles, he educates readers and clients on the intricacies of workers' comp insurance.
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