For sheet metal workers comp insurance, shops are classified by what they install, and duct for heating and cooling is often treated apart from gutters, flashing and other architectural metal. California publishes both as wage-split pairs, while Arizona and Nevada use NCCI classifications, and the carrier makes the final determination in each state.
California. Sheet metal contractors are licensed as C-43 Sheet Metal, and the CSLB requires workers comp once a shop has an employee. A C-43 holder working alone can file a no-employee exemption for now, but it is scheduled to end on January 1, 2028, and the rule could still change. The California sheet metal workers comp page covers the wage line, duct work and the audit.
Arizona. Many sheet metal installers work alone as subs. Arizona Revised Statutes 23-961 lets a sole proprietor waive coverage as an independent contractor, but the waiver needs the signatures of both the sole proprietor and the hiring employer's carrier. Without a valid waiver or proof of coverage, a hiring contractor may face questions at audit. Confirm the license class for your work with the Registrar of Contractors. The owner rules, subs and audit records for Arizona are covered in Arizona sheet metal workers compensation.
Nevada. Workers comp is called industrial insurance. Nevada treats subcontractors and their employees as employees of the principal contractor, and the independent-enterprise exception doesn't help a principal contractor licensed by the State Contractors Board. A sheet metal sub on a commercial job should expect to show proof of industrial insurance, and should confirm the license class with the board. The payroll limit, owner rules and audit records for Nevada are covered in Nevada sheet metal workers compensation.
In California, the WCIRB publishes a sheet metal work pair for installed items such as gutters, flashing, flues and kitchen hoods, split at $37.00 an hour for policies from September 1, 2026: 5538(1) below the line and 5542(1) at or above it. Duct for heating and air conditioning sits in its own pair with the same line, and shop fabrication typically follows the installation when the shop installs what it makes.
Arizona and Nevada use NCCI classifications, which this site doesn't publish, and California codes don't carry over. Classification depends on the duties crews actually perform and the carrier's determination; we don't assign or confirm codes. The workers comp class codes for contractors and restaurants page explains who publishes each state's list, and duct-heavy shops can compare workers comp for HVAC contractors.
Workers comp is about injuries to your crew. A leak around flashing you installed, damage to a client's property or a truck accident typically falls to general liability, commercial auto or a bond. Gleason Insurance Brokers explains liability and other coverage for a sheet metal shop on its main site.
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In California, the WCIRB gives heating and air conditioning duct its own wage-split pair, separate from general sheet metal work, even when a sheet metal shop installs it. Arizona and Nevada use NCCI classifications, and the answer there depends on the carrier's determination.
Arizona lets a sole proprietor waive coverage as an independent contractor, but the waiver has to be signed by both the sole proprietor and the hiring employer's carrier. Without it, the hiring contractor may be asked about that sub at audit. Confirm the details with the carrier before relying on a waiver.
Typically, yes. California payroll is reported under WCIRB classifications, and Arizona or Nevada payroll under NCCI classifications, with no code carrying across. Keep payroll records by state and by type of work so each state's portion can be classified.
Sheet metal is classified by what you install, so a quote that rates HVAC duct, gutters and flashing, and kitchen hoods as one kind of work may not match your payroll. Shop fabrication and field installation can also be split. Compare how each quote divides your work, the wage basis it uses and the audit and claims help behind it. See checking a low workers comp quote.
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Reviewed by David Gleason, Principal, on .
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Sheet metal workers comp for fabricators and installers in California, Arizona and Nevada.
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