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NAICS Codes

What are NAICS Codes?

NAICS Codes (North American Industry Classification System) are the standard system used by federal agencies and insurance companies to classify business establishments.

 

Manufacturing operations fall under NAICS codes 31-33, with more specific sub-codes identifying your particular manufacturing sector and specialty.

Why it Matters for Manufacturers

Your NAICS code helps insurers understand your business type, assess risk, and determine appropriate coverage and pricing. 


Like ISO codes, accurate NAICS classification is important for proper underwriting and premium calculation. Insurance companies use these codes to group similar businesses and apply appropriate risk assessment methodologies. 


Using the correct NAICS code ensures you are compared to similar manufacturers rather than being misclassified into a higher-risk category. This classification also affects your eligibility for certain specialized insurance programs and influences how insurers evaluate your business.

NAICS Code Verification Checklist

Ensure your classification is accurate for proper insurance rating

Code Identification & Documentation

Insurance Application & Consistency

Operational Accuracy

Review & Updates

Misclassification Risk: Using an incorrect NAICS code can result in improper premium calculation, coverage gaps, or claim disputes. Insurers may reclassify you mid-policy, resulting in surprise premium adjustments or retroactive charges.
Resources: Search official NAICS codes at census.gov/naics. Work with your insurance broker to ensure your code accurately reflects your operations. Keep documentation of your manufacturing processes to support your classification.