Do I Need a License or Certification to Operate a Machine Shop?
- Nate Jones, CPCU, ARM, CLCS, AU
- 6 days ago
- 3 min read
Starting a machine shop is an exciting opportunity for entrepreneurs in precision machining, CNC milling, metal fabrication, and tooling. But before you begin operations, it’s important to understand the legal and professional requirements — including licenses, permits, and certifications.
At Wexford Insurance, we help machine shop owners protect their businesses with tailored insurance programs. In this guide, we’ll break down what licenses and certifications you may need to legally and successfully operate a machine shop.
Business Licenses and Permits
1. General Business License
Most cities and counties require a general business license to legally operate. This license confirms your shop complies with local commerce regulations and zoning laws. You can apply through your city or county clerk’s office.
Learn more from the U.S. Small Business Administration.
2. Zoning and Occupancy Permits
Your machine shop must be located in an area zoned for industrial or commercial use. You may need a Certificate of Occupancy from your local planning department to confirm your facility meets safety and zoning standards.
3. Environmental Permits
If your shop generates hazardous waste (e.g., solvents, oils, coolants), you may need an EPA Identification Number under the Resource Conservation and Recovery Act (RCRA). This ensures proper handling and disposal of waste materials.
Certifications for Machinists and Shop Owners
While certifications are not legally required to operate a machine shop, they can significantly improve your credibility, safety standards, and ability to win contracts.
Common Certifications Include:
NIMS (National Institute for Metalworking Skills) – Recognized across the machining industry for CNC, milling, and turning skills.
AWS (American Welding Society) – Ideal for shops offering welding services.
OSHA Safety Training – Recommended for all employees to meet workplace safety standards.
CAD/CAM Software Certifications – Useful for operators using SolidWorks, MasterCAM, or Fusion 360.
Do You Need a License to Operate CNC Machines?
Operating CNC machines does not require a federal license, but some states or cities may require operator training or certifications for safety compliance. Employers often prefer certified machinists, especially for high-precision or aerospace work.
For more details, visit the U.S. Bureau of Labor Statistics.
Insurance Coverage for Machine Shops
Licenses and certifications help you stay compliant — but insurance protects your business from unexpected risks. At Wexford Insurance, we offer specialized coverage for machine shops, including:
Protects against third-party claims involving bodily injury, property damage, and legal defense costs.
Covers your building, machinery, tools, inventory, and computers from fire, theft, vandalism, and natural disasters.
Covers mechanical or electrical failure of CNC machines, lathes, mills, and welding stations — including repair costs and lost income.
Required if you have employees. Covers medical expenses, lost wages, and rehabilitation for work-related injuries.
Covers vehicles used for deliveries, service calls, or transporting materials — including liability and medical expenses.
Final Thoughts
While you may not need a federal license to operate a machine shop, local permits, zoning approvals, and certifications are essential for legal compliance and business success. At Wexford Insurance, we help machine shop owners navigate startup requirements and protect their operations with specialized insurance coverage.
Ready to launch your machine shop?
Contact Wexford Insurance today to get expert guidance and custom insurance solutions.