# Bright Coast Insurance **Florida-Licensed Independent Insurance Agency** | Florida License #L103957 Phone: (239) 475-0361 | Email: support@brightcoastins.com Address: PO Box 417, Pineland, FL 33945 Website: https://brightcoastins.com Google Business Profile: https://www.google.com/maps/search/?api=1&query=Bright+Coast+Insurance&query_place_id=ChIJ2bHi4scRv4gRzuxlEjQ0a84 --- # Class 8265: iron and steel scrap dealers and their drivers 8265 covers the ferrous scrap trade: dealers who buy, sort, cut, bale and ship iron and steel scrap, together with their drivers. An earlier version of this page called 8265 "Store - Wholesale Lumber", which is a different trade entirely. FWCJUA lists the code as Iron/Steel Scrap Dealer. ## Verified facts about code 8265 - The FWCJUA (FL assigned-risk) 2026 rate for 8265 is $3.218 per $100 of payroll. Florida is a rate state, so carrier pricing starts from the OIR-approved approved rate, then the carrier's deviation, schedule rating, premium discount and your experience mod. ([Florida Office of Insurance Regulation (I-File 25-055760, acknowledged January 26, 2026), published by FWCJUA](https://www.fwcjua.com/Home/DisplayDocument?intDocId=16046)) - OSHA notes that ferrous scrap is magnetic and is often picked up in scrap yards by a large electromagnet attached to a crane. ([OSHA](https://www.osha.gov/sites/default/files/publications/OSHA3348-METAL-SCRAP-RECYCLING.pdf)) - OSHA's scrap guidance says mechanical shears cannot be stopped quickly in an emergency, while hydraulic shears can be stopped instantly. It calls hydraulic shears safer for the operator. ([OSHA](https://www.osha.gov/sites/default/files/publications/OSHA3348-METAL-SCRAP-RECYCLING.pdf)) - Selling new iron or steel is classified separately: FWCJUA (Florida Workers’ Compensation Joint Underwriting Association) lists Iron or Steel Merchant & Drivers as 8106. ([Montana State Fund](https://montanastatefund.com/web/docs/class-codes-py2026.pdf)) ## 8265 next to the metal and salvage classes it borders | Class | Florida description | Rate | |---|---|---| | 8265 | IRON/STEEL SCRAP DEALER | $3.218 per $100 of payroll | | 8106 | IRON OR STEEL MERCHANT | $3.540 per $100 of payroll | | 8263 | JUNK DEALER | $4.674 per $100 of payroll | FWCJUA (FL assigned-risk) 2026 rate, effective January 1, 2026: [OIR-acknowledged exhibit](https://www.fwcjua.com/Home/DisplayDocument?intDocId=16046), checked 2026-10-24. Florida is a rate state, so carrier pricing starts from the OIR-approved approved rate, then the carrier's deviation, schedule rating, premium discount and your experience mod. In the FWCJUA (FL assigned-risk) 2026 table, a scrap dealer (8265) is priced below a new iron or steel merchant (8106), well below a junk dealer (8263), and below auto dismantling (3821). A yard that also strips cars for parts needs that payroll tracked separately, because 3821 is the most expensive class on this list. **Illustration (not a quote):** A ferrous yard runs a crane operator, two torch cutters, a shear operator, a baler operator, scale staff and four drivers, with $640,000 in total payroll. Years without serious losses earned it a 0.88 mod. $640,000 ÷ 100 × $3.218 = $20,595; × mod 0.88 = $18,124. FWCJUA (assigned-risk) estimate: $34,979, before the $160 expense constant, $475 flat fee and minimum premium. ## From the scale to the shear: what 8265 includes 8265 covers the whole dealer operation for ferrous scrap. That means weighing incoming loads, sorting with a magnet crane, cutting heavy pieces by torch or shear, baling light sheet, and loading outbound shipments. The phraseology includes drivers, so collection and delivery stay in 8265. OSHA's guidance describes the same sequence for metal recycling generally: getting scrap to the yard, sorting it into groups, and processing it by cutting, baling, compacting or shredding. ## Metal work outside the scrap dealer class Dealing in new iron or steel is 8106. A dealer handling mixed used goods, metal and non-metal, may be a junk dealer in 8263. Taking cars apart for resale of parts is automobile dismantling, 3821 in Florida's table. Used bottles, paper stock and cans are 8264, even if the same yard takes them in. ## Jobs in a ferrous scrap yard Roles that map to the operations OSHA describes: - Crane operator sorting ferrous scrap with an electromagnet - Torch cutter breaking down structural steel and tanks - Alligator shear operator cutting short steel for foundries - Baler operator compacting light sheet scrap - Driver hauling roll-off containers from customer sites ## Amputation, crush and fume hazards in scrap processing OSHA's scrap guidance warns that shear operators often work close to the machine and face amputation and crushing hazards. It also warns that shears can throw small pieces of metal. Gas torch cutting is one of the most common ways to break apart large pieces, and it brings fire and fume exposure. Contaminants arrive with the scrap. OSHA's guidance covers lead, cadmium, mercury and radioactive scrap from sources such as discarded medical equipment. Its scrap metal page records a fatality in which a worker was crushed while clearing a jam in a shredder's hydraulic door. ## Controls OSHA points to for scrap yards From OSHA 3348 and related standards: - Prefer hydraulic shears or foot-pedal controls that stop the blade when released - Use wrist straps or remote crane-mounted shears to keep limbs away from the point of operation - Lock out shears, balers and shredders before servicing or clearing jams - Inspect forklifts and cranes before or after each shift, and train their operators ## Scrap dealer, junk dealer or dismantler: the 8265 boundary The label on this page used to be a lumber yard description, a reminder that the code number alone tells you nothing. At audit, what matters is what the yard buys and how it processes it. Ferrous scrap processing fits 8265. Errors usually come from mixed operations. Car stripping (3821) and mixed junk (8263) both cost more than 8265 in Florida, so yards that do both should keep timesheets that separate the work. ## Florida rules that apply to a scrap dealer Scrap dealing is outside Rule 69L-6.021's construction list, so a ferrous yard needs a policy once it reaches four workers. Demolition is the exception to watch: crews who take structures apart on a customer's property may be doing listed construction work, and under 69L-6.021(2) that single operation turns the whole yard into a construction employer. Peddlers and independent haulers who sell scrap to the yard are a separate question. They fall outside the employee definition only when they pass the statute's multi-factor independent contractor test. ## Scrap yard questions about class 8265 **Is 8265 a lumber or wholesale code?** No. FWCJUA lists 8265 as Iron/Steel Scrap Dealer, and the classification phraseology is Iron or Steel Scrap Dealer & Drivers. **Are roll-off drivers in 8265?** Yes, when they drive for the scrap dealer. The phraseology includes drivers. **What safety control does OSHA favor for shears?** OSHA's scrap guidance favors hydraulic shears, which can stop instantly, along with foot pedals, wrist straps or remote operation that keep the operator away from the blade. **What record shows a torch cutter is on the scrap dealer's payroll?** The timecard plus the yard's equipment list. If a contractor brings the torch, that contractor's policy is the one that should list the cutter, not the dealer's. ## Sources - Florida Office of Insurance Regulation (I-File 25-055760, acknowledged January 26, 2026), published by FWCJUA: [1-1-2026 Rate Filing: OIR Acknowledgement of Filed Rates, class rates effective January 1, 2026](https://www.fwcjua.com/Home/DisplayDocument?intDocId=16046) - Florida Workers' Compensation Joint Underwriting Association (FWCJUA): [2026 rates and minimum premiums by class, effective January 1, 2026](https://www.fwcjua.com/Rates) - OSHA: [OSHA 3348: Guidance for the Identification and Control of Safety and Health Hazards in Metal Scrap Recycling](https://www.osha.gov/sites/default/files/publications/OSHA3348-METAL-SCRAP-RECYCLING.pdf) - Montana State Fund: [Classification Codes PY2026: classification phraseologies and suffixes](https://montanastatefund.com/web/docs/class-codes-py2026.pdf) - OSHA: [Green Job Hazards, Recycling: Scrap Metal Recycling](https://www.osha.gov/green-jobs/recycling/scrap-metal) - OSHA: [Lead: who is exposed](https://www.osha.gov/lead) - OSHA: [Control of Hazardous Energy (Lockout/Tagout)](https://www.osha.gov/control-hazardous-energy) - Florida Department of Financial Services, Division of Workers' Compensation: [Rule 69L-6.021, F.A.C.: Construction Industry Classification Codes, Descriptions, and Operations Scope of Exemption](https://www.flrules.org/gateway/ruleNo.asp?id=69L-6.021) - Florida Senate: [Section 440.02, Florida Statutes: Definitions (employment, employee, employer, exemptions)](https://www.flsenate.gov/Laws/Statutes/2025/440.02) --- ## About Bright Coast Insurance Bright Coast Insurance is a Florida-licensed independent insurance agency (Florida License #L103957) specializing in commercial insurance for Florida contractors, builders, property owners, and HOA/condo associations. As an independent agency, we represent multiple carriers including US Assure (builders risk), Employers Holdings, AmTrust Financial, and others — allowing us to find the best coverage at the most competitive rate for each client. **Contact:** (239) 475-0361 | support@brightcoastins.com **Address:** PO Box 417, Pineland, FL 33945 **Website:** https://brightcoastins.com **Hours:** Monday–Friday, 8 AM–5 PM ET *Bright Coast Insurance is an authorized FWCJUA placement agency and an authorized US Assure builders risk agency.*