NAICS Code Lookup

The North American Industry Classification System (NAICS) is the standard used by federal statistical agencies to classify business establishments. Developed jointly by the United States, Canada, and Mexico, NAICS replaced the older SIC system in 1997 to provide a more modern and comprehensive framework for classifying industries in the North American economy.

NAICS codes are structured in a hierarchical format. Two-digit codes represent broad economic sectors (such as 23 for Construction or 52 for Finance and Insurance). Three-digit codes identify subsectors within each sector, and four-digit codes define industry groups. Five-digit and six-digit codes provide even more specific classifications at the industry and national levels.

The system is updated every five years by the U.S. Census Bureau to reflect changes in the economy, including the emergence of new industries and the evolution of existing ones. The most recent revision ensures that sectors like information technology, e-commerce, and renewable energy are properly represented.

In commercial insurance, NAICS codes are essential for proper risk classification. When an agency onboards a new commercial client, the NAICS code helps underwriters understand the nature of the business, its typical risk exposures, and how to price coverage appropriately. Insurance carriers use NAICS codes alongside class codes to determine appetite, set premiums, and evaluate aggregate exposure across their book of business.

Accurate NAICS coding also matters for regulatory compliance, E&S surplus lines filings, and data analytics. Agencies that consistently assign the correct NAICS codes to their clients can generate more meaningful reports on their book composition, identify concentration risk by industry, and spot cross-sell opportunities for related coverages.

In Applied Epic and other agency management systems, the NAICS code is typically stored at the client level and flows through to submissions, certificates of insurance, and carrier reporting. Keeping this field accurate and up to date is a best practice that pays dividends across underwriting, marketing, and compliance workflows.

While NAICS has been the official classification system since 1997, many insurance carriers and regulatory bodies still reference SIC (Standard Industrial Classification) codes. SIC codes use a four-digit numeric system that predates NAICS and covers fewer industries. Some carrier systems accept both NAICS and SIC codes, while others require one or the other.

The key difference is that NAICS uses a production-oriented framework (classifying businesses by what they do), while SIC was more product-oriented. NAICS also provides better coverage of service industries, technology companies, and newer economic sectors. When in doubt, agencies should assign both NAICS and SIC codes to their commercial clients to ensure compatibility with all carrier systems.