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    52412 - Direct Insurance (except Life, Health, and Medical) Carriers

    Understanding NAICS codes is essential for businesses, government contractors, and industry analysts alike. One particularly important code within the Finance and Insurance sector is NAICS 52412, which covers Direct Insurance (except Life, Health, and Medical) Carriers. If your business deals with property, casualty, or other non-life insurance underwriting, this code is critical for classification, compliance, and market analysis.


    What is NAICS Code 52412?

    NAICS 52412 represents establishments primarily engaged in underwriting insurance policies that exclude life, health, and medical insurance. Instead, these businesses focus on direct insurance, including property and casualty insurance, auto insurance, homeowners insurance, and other related coverages.

    Underwriters in this category assume the risk for these insurance policies and provide coverage directly to policyholders without acting as intermediaries or agents.


    Sector and Industry Overview

    • Sector: Finance and Insurance
    • Industry: Insurance Carriers
    • NAICS Code: 52412
    • Industry Description:
      This industry comprises companies that actively underwrite insurance policies (except life, health, and medical) and take on the financial risk of these policies by providing direct coverage to consumers and businesses.

    Typical Business Activities Under NAICS 52412

    Businesses classified under this NAICS code engage in various significant activities, including:

    • Property and Casualty Insurance Carriers: Providing insurance for property damages, liability, and casualty losses.
    • Auto Insurance Providers: Underwriting personal and commercial auto insurance policies that protect vehicles against damage, theft, or liability.
    • Homeowners Insurance Companies: Issuing policies that protect homeowners against damage to their property and liability for accidents occurring on their premises.

    Other insurance types may include renters insurance, commercial property insurance, and specialty lines excluding life and health coverage.


    Size Standards for NAICS Code 52412 Eligibility

    The U.S. Small Business Administration (SBA) establishes size standards to determine small business eligibility, often important for government contracting and certification programs.

    • Size Standard: Typically, the size standard for NAICS 52412 is based on annual receipts or number of employees.
    • For example, many insurance-related NAICS codes define small businesses as those with annual receipts up to $38.5 million.
    • It’s essential to consult the SBA’s most current standards or Federal Acquisition Regulation (FAR) for exact thresholds.

    Examples of Businesses Under NAICS 52412

    • State Farm Mutual Automobile Insurance Company – Auto and homeowners insurance provider
    • Allstate Insurance Company – Property and casualty insurance carrier
    • Progressive Corporation – Specialty in auto insurance underwriting
    • The Travelers Companies, Inc. – Property casualty insurance business
    • Farmers Insurance Group – Offering a variety of property and auto insurance products

    NAICS Code 52412 - Summary Table

    Code Title Description Sector Size Standard Examples
    52412 Direct Insurance (except Life, Health, and Medical) Carriers Establishments underwriting insurance policies (except life, health, and medical) and assuming risks in property, casualty, and other direct insurance types. Finance and Insurance Up to $38.5M annual receipts* Property and Casualty Insurance Carriers, Auto Insurance Providers, Homeowners Insurance Companies

    *Please verify current SBA size standards as thresholds may change.


    Frequently Asked Questions (FAQ)

    1. What types of insurance does NAICS 52412 exclude?

    NAICS 52412 excludes life insurance, health insurance, and medical insurance. These are classified under different NAICS codes, such as 52411 for Life Insurance Carriers.

    2. Can a business be classified under multiple NAICS codes?

    Yes, businesses offering a variety of insurance products may have multiple NAICS codes, but their primary classification depends on their principal business activity by revenue.

    3. Why is NAICS code classification important in government contracting?

    NAICS codes determine eligibility for small business programs, set acquisition targets, and help contracting officers identify appropriate suppliers and set-asides.

    4. How can I find the exact size standard for my insurance business?

    Consult the Small Business Administration (SBA) website or refer to the Federal Acquisition Regulation (FAR) for the current size standards tied to your NAICS code.

    5. Are brokers and agents included under NAICS 52412?

    No. This code strictly covers direct carriers underwriting insurance. Brokers and agents fall under different NAICS codes, such as 52421 for Insurance Agencies and Brokerages.


    Conclusion

    Understanding NAICS code 52412 is crucial for businesses involved in underwriting direct insurance policies excluding life, health, and medical lines. Whether you're a property and casualty insurer, an auto insurance provider, or a homeowners insurance company, proper classification helps in compliance, market access, and participation in government programs.

    For more insights into NAICS codes and how they impact your insurance business, stay tuned to our blog or consult official government resources.


    Keywords: NAICS 52412, Direct Insurance Carriers, Property and Casualty Insurance, Auto Insurance Providers, Homeowners Insurance, Finance and Insurance Sector, Small Business Size Standards, Government Contracting, Insurance Underwriting