Abstract: An insulated electrode cover for a welding electrode holder is provided that can reduce or eliminate inadvertent electrical arcing between the electrode holder and adjacent objects. The insulated electrode cover comprises a cap configured to couple to the welding electrode holder. The cap is positioned on the welding electrode holder to overlie selective portions of the jaws of the welding electrode holder so that, when a welding rod is clamped in the jaws of the electrode holder and the electrode is energized, no electrically conductive portion on the exterior surfaces of the jaws is exposed. This can greatly increase the safety of the welding electrode by reducing or eliminating inadvertent shocks and/or fires that can be created by conventional welding electrode holders.