Learn about Retail Trade – NAICS Code 44-45 – For Commercial Insurance. Insurance companies use NAICS codes to classify your industry and calculate your premiums. See all the six digit codes that fall under this primary NAICS class code for business insurance underwriting and cost purposes.
Retail Trade – NAICS Code 44-45
What’s the best way to describe your company’s business operations? Are you involved in the Retail Trade industry?
If so, then your business classification falls under Retail Trade – NAICS Code 44-45 – For Commercial Insurance. Insurance companies use NAICS codes to identify customers by industry code.
The NAICS sector code is a six digit number: the first two digits designate the largest business sector, the third digit designates the subsector, the fourth digit designates the industry group, and the fifth digit designates particular industries. The last digit designates national industries.
Sector 44-45 – Retail Trade – NAICS Manual
The Retail Trade sector comprises establishments engaged in retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. The retailing process is the final step in the distribution of merchandise; retailers are, therefore, organized to sell merchandise in small quantities to the general public. This sector comprises two main types of retailers: store and nonstore retailers.
1. Store retailers operate fixed point-of-sale locations, located and designed to attract a high volume of walk-in customers. In general, retail stores have extensive displays of merchandise and use mass-media advertising to attract customers. They typically sell merchandise to the general public for personal or household consumption, but some also serve business and institutional clients. These include office supply stores, computer and software stores, building materials dealers, plumbing supply stores, and electrical supply stores. Catalog showrooms, gasoline stations, automotive dealers, and mobile home dealers are treated as store retailers.
In addition to retailing merchandise, some types of store retailers are also engaged in the provision of after-sales services, such as repair and installation. For example, new automobile dealers, electronics and appliance stores, and musical instrument and supplies stores often provide repair services. As a general rule, establishments engaged in retailing merchandise and providing after-sales services are classified in this sector.
The first eleven subsectors of retail trade are store retailers. The establishments are grouped into industries and industry groups typically based on one or more of the following criteria:
- (a) The merchandise line or lines carried by the store; for example, specialty stores are distinguished from general-line stores.
- (b) The usual trade designation of the establishments. This criterion applies in cases where a store type is well recognized by the industry and the public, but difficult to define strictly in terms of merchandise lines carried; for example, pharmacies, hardware stores, and department stores.
- (c) Capital requirements in terms of display equipment; for example, food stores have equipment requirements not found in other retail industries.
- (d) Human resource requirements in terms of expertise; for example, the staff of an automobile dealer requires knowledge in financing, registering, and licensing issues that are not necessary in other retail industries.
2. Nonstore retailers, like store retailers, are organized to serve the general public, but their retailing methods differ. The establishments of this subsector reach customers and market merchandise with methods, such as the broadcasting of “infomercials,” the broadcasting and publishing of direct-response advertising, the publishing of paper and electronic catalogs, door-to-door solicitation, in-home demonstration, selling from portable stalls (street vendors, except food), and distribution through vending machines. Establishments engaged in the direct sale (nonstore) of products, such as home heating oil dealers and home delivery newspaper routes, are included here.
The buying of goods for resale is a characteristic of retail trade establishments that particularly distinguishes them from establishments in the agriculture, manufacturing, and construction industries. For example, farms that sell their products at or from the point of production are not classified in retail, but rather in agriculture. Similarly, establishments that both manufacture and sell their products to the general public are not classified in retail, but rather in manufacturing. However, establishments that engage in processing activities incidental to retailing are classified in retail. This includes optical goods stores that do in-store grinding of lenses, and meat and seafood markets.
Wholesalers also engage in the buying of goods for resale, but they are not usually organized to serve the general public. They typically operate from a warehouse or office, and neither the design nor the location of these premises is intended to solicit a high volume of walk-in traffic. Wholesalers supply institutional, industrial, wholesale, and retail clients; their operations are, therefore, generally organized to purchase, sell, and deliver merchandise in larger quantities. However, dealers of durable nonconsumer goods, such as farm machinery and heavy-duty trucks, are included in wholesale trade even if they often sell these products in single units.
How NAICS Classifications Effects Your Commercial Insurance Cost
But how does your Retail Trade – NAICS Code 44-45 – For Commercial Insurance classification affect your premiums and insurance cost? Insurance companies selling commercial insurance use NAICS codes in many ways – to analyze and classify the businesses they insure, or choose not insure. Some small business NAICS code classifications can result in you paying higher premiums for your business insurance. It is important that your business is classified properly.
Industry codes help insurers with several analytical processes involving marketing, underwriting, exclusions, loss control, forms, pricing and other operations. Let’s look at some of the the NAICS codes under your classification.
NAICS Structure
Following is a list of all the codes and titles. If the title is linked you can drill down for more information:
- 441110 New Car Dealers
- 441120 Used Car Dealers
- 441210 Recreational Vehicle Dealers
- 441222 Boat Dealers
- 441228 Motorcycle, ATV, and All Other Motor Vehicle Dealers
- 441310 Automotive Parts and Accessories Stores
- 441320 Tire Dealers
- 442110 Furniture Stores
- 442210 Floor Covering Stores
- 442291 Window Treatment Stores
- 442299 All Other Home Furnishings Stores
- 443141 Household Appliance Stores
- 443142 Electronics Stores
- 444110 Home Centers
- 444120 Paint and Wallpaper Stores
- 444130 Hardware Stores
- 444190 Other Building Material Dealers
- 444210 Outdoor Power Equipment Stores
- 444220 Nursery, Garden Center, and Farm Supply Stores
- 445110 Supermarkets and Other Grocery (except Convenience) Stores
- 445120 Convenience Stores
- 445210 Meat Markets
- 445220 Fish and Seafood Markets
- 445230 Fruit and Vegetable Markets
- 445291 Baked Goods Stores
- 445292 Confectionery and Nut Stores
- 445299 All Other Specialty Food Stores
- 445310 Beer, Wine, and Liquor Stores
- 446110 Pharmacies and Drug Stores
- 446120 Cosmetics, Beauty Supplies, and Perfume Stores
- 446130 Optical Goods Stores
- 446191 Food (Health) Supplement Stores
- 446199 All Other Health and Personal Care Stores
- 447110 Gasoline Stations with Convenience Stores
- 447190 Other Gasoline Stations
- 448110 Men’s Clothing Stores
- 448120 Women’s Clothing Stores
- 448130 Children’s and Infants’ Clothing Stores
- 448140 Family Clothing Stores
- 448150 Clothing Accessories Stores
- 448190 Other Clothing Stores
- 448210 Shoe Stores
- 448310 Jewelry Stores
- 448320 Luggage and Leather Goods Stores
- 451110 Sporting Goods Stores
- 451120 Hobby, Toy, and Game Stores
- 451130 Sewing, Needlework, and Piece Goods Stores
- 451140 Musical Instrument and Supplies Stores
- 451211 Book Stores
- 451212 News Dealers and Newsstands
- 452210 Department Stores
- 452311 Warehouse Clubs and Supercenters
- 452319 All Other General Merchandise Stores
- 453110 Florists
- 453210 Office Supplies and Stationery Stores
- 453220 Gift, Novelty, and Souvenir Stores
- 453310 Used Merchandise Stores
- 453910 Pet and Pet Supplies Stores
- 453920 Art Dealers
- 453930 Manufactured (Mobile) Home Dealers
- 453991 Tobacco Stores
- 453998 All Other Miscellaneous Store Retailers (except Tobacco Stores)
- 454110 Electronic Shopping and Mail-Order Houses
- 454210 Vending Machine Operators
- 454310 Fuel Dealers
- 454390 Other Direct Selling Establishments
Retail Trade – NAICS Code 44-45 – For Commercial Insurance
We hope this information on Retail Trade – NAICS Code 44-45 – For Commercial Insurance has been helpful. Your classification determines how much you pay for your commercial insurance and much more.