524210 - Insurance Agencies and Brokerages
When it comes to navigating the complex world of insurance sales, NAICS Code 524210 plays a crucial role in defining the organizations that act as the essential middlemen. If you're involved in selling or brokering insurance policies, or if you want to understand the industry better, this code is your gateway. In this blog post, we dive into everything you need to know about NAICS code 524210 – Insurance Agencies and Brokerages.
What is NAICS Code 524210?
NAICS Code 524210 covers establishments primarily engaged in acting as agents or brokers in selling insurance policies. These businesses don't underwrite insurance themselves but facilitate the sale of insurance products between insurers and clients. They bridge the gap, helping individuals and businesses find the right insurance coverage from various providers.
Sector: Finance and Insurance
Insurance Agencies and Brokerages operate within the Finance and Insurance sector. This sector is critical in providing financial security and risk management solutions across all industries.
Key Business Activities Under NAICS 524210
Businesses classified under NAICS 524210 typically perform one or more of the following activities:
- Acting as agents selling insurance policies on behalf of insurance companies.
- Operating as brokers, representing clients to find the best insurance options.
- Facilitating the sale of life, health, property, casualty, and specialty insurance products.
- Providing consultation and advisory services related to insurance coverage.
- Managing client insurance portfolios and claims through ongoing support.
Size Standard for Eligibility
For small business classification and eligibility for government contracting, the size standard for NAICS code 524210 is set at:
- $15 million dollars in average annual receipts
This threshold helps define whether an insurance agency or brokerage qualifies as a small business under SBA guidelines.
Examples of Businesses Under NAICS 524210
Here are typical examples of businesses and roles that fall under the Insurance Agencies and Brokerages category:
- Licensed Insurance Agencies that represent multiple insurance carriers.
- Independent Insurance Brokerages helping clients compare and purchase insurance policies.
- Insurance Sales Representatives working on commission to sell specific products.
- Life Insurance Agencies specializing in life insurance products and annuities.
- Property and Casualty Insurance Agents focusing on home, auto, and commercial insurance.
NAICS 524210 Code Details
| Code | Description |
|---|---|
| 524210 | Insurance Agencies and Brokerages |
| Agencies, insurance | Establishments acting as agents selling insurance policies |
| Brokerages, insurance | Firms brokering insurance coverage between insurers and clients |
| Brokers' offices, insurance | Offices where insurance brokers operate |
| Insurance agencies | Businesses selling various insurance policies |
| Insurance brokerages | Companies arranging insurance contracts for clients |
| Life insurance agencies | Agencies specializing in life insurance products |
Frequently Asked Questions (FAQ)
What types of insurance are covered under NAICS 524210?
NAICS 524210 covers a broad range of insurance types, including life, health, property, casualty, and specialty insurance products offered through agencies and brokerages.
Can a business that underwrites insurance fall under this code?
No, NAICS 524210 does not include insurance underwriting companies. It specifically covers agencies and brokerages that sell insurance policies but do not underwrite the risks.
How is the $15 million size standard calculated?
The size standard is based on the average annual receipts of the business over the past three years, making it a key metric for small business eligibility for government contracts.
Are independent insurance brokers included in this classification?
Yes, independent brokers—those who represent clients to find the best insurance policies across various carriers—fall under this NAICS classification.
Conclusion
NAICS Code 524210 - Insurance Agencies and Brokerages defines a vital segment of the finance and insurance sector, encompassing businesses that enable the sale and purchase of insurance products. Whether you are an insurance agent, a brokerage firm, or a sales representative, understanding this NAICS code, its size standards, and typical activities is crucial for industry classification, compliance, and accessing government contracting opportunities.
Keywords: NAICS code 524210, Insurance agencies, Insurance brokerages, Insurance sales representatives, Life insurance agencies, Finance and insurance sector, Insurance brokers, Small business size standard, $15 million size standard
