MANUFACTURING- SIC DIVISION D - FOR COMMERCIAL INSURANCE

Learn about Manufacturing – SIC Division D – For Commercial Insurance. Insurance companies use SIC codes to classify your industry and calculate your premiums. See the class descriptions that fall under this primary SIC Division for business insurance underwriting and cost purposes.

What’s the best way to describe your company’s business operations? Are you involved in the Manufacturing industry?

If so, then your business classification falls under Manufacturing – SIC Division D – For Commercial Insurance. Insurance companies use SIC codes to identify customers by industry code.

SIC Division codes help insurers with several analytical processes involving marketing, underwriting, exclusions, loss control, forms, pricing and other operations.

Division D – Manufacturing – SIC Manual

The manufacturing division includes establishments engaged in the mechanical or chemical transformation of materials or substances into new products. These establishments are usually described as plants, factories, or mills and characteristically use power driven machines and materials handling equipment. Establishments engaged in assembling component parts of manufactured products are also considered manufacturing if the new product is neither a structure nor other fixed improvement. Also included is the blending of materials, such as lubricating oils, plastics resins, or liquors.

The materials processed by manufacturing establishments include products of agriculture, forestry, fishing, mining, and quarrying as well as products of other manufacturing establishments. The new product of a manufacturing establishment may be finished in the sense that it is ready for utilization or consumption, or it may be semifinished to become a raw material for an establishment engaged in further manufacturing. For example, the product of the copper smelter is the raw material used in electrolytic refineries; refined copper is the raw material used by copper wire mills; and copper wire is the raw material used by certain electrical equipment manufacturers.

The materials used by manufacturing establishments may be purchased directly from producers, obtained through customary trade channels, or secured without recourse to the market by transferring the product from one establishment to another which is under the same ownership. Manufacturing production is usually carried on for the wholesale market, for interplant transfer, or to order for industrial users, rather than for direct sale to the domestic consumer.

There are numerous borderline cases between manufacturing and other divisions of the classification system. Specific instances will be found in the descriptions of the individual industries. The following activities, although not always considered as manufacturing, are so classified:

Milk bottling and pasteurizing
Fresh fish packaging (oyster shucking, fish filleting)
Apparel jobbing (assigning of materials to contract factories or shops for fabrication or other contract operations) as well as contracting on materials owned by others
Publishing
Ready-mixed concrete production
Leather converting
Logging
Wood preserving
Various service industries to the manufacturing trade, such as typesetting, engraving, plate printing, and preparing electrotyping and stereotype plates, but not blueprinting or photocopying services
Electroplating, plating, metal heat treating, and polishing for the trade
Lapidary work for the trade
Fabricating of signs and advertising displays

There are also some manufacturing-type activities performed by establishments which are primarily engaged in activities covered by other divisions, and are, thus, not classified as manufacturing. A few of the more important examples are:

Agriculture, Forestry, and Fishing. Processing on farms is not considered manufacturing if the raw materials are grown on the farm and if the manufacturing activities are on a small scale without the extensive use of paid labor. Other exclusions are threshing and cotton ginning.

Mining. The dressing and beneficiating of ores; the breaking, washing, and grading of coal; the crushing and breaking of stone; and the crushing, grinding, or otherwise preparing of sand, gravel, and nonmetallic chemical and fertilizer minerals other than barite are classified in Mining.

Construction. Fabricating operations performed at the site of construction by contractors are not considered manufacturing, but the prefabrication of sheet metal, concrete, and terrazzo products and similar construction materials is included in the Manufacturing Division.

Wholesale and Retail Trade. Establishments engaged in the following types of operations are included in Wholesale or Retail Trade: cutting and selling purchased carcasses; preparing feed at grain elevators and farm supply stores; stemming leaf tobacco at wholesale establishments; and production of wiping rags. The breaking of bulk and redistribution in smaller lots, including packaging, repackaging, or bottling products, such as liquors or chemicals, is also classified as Wholesale or Retail Trade. Also included in Retail Trade are establishments primarily engaged in selling, to the general public, products produced on the same premises from which they are sold, such as bakeries, candy stores, ice cream parlors, and custom tailors.

Services. Tire retreading and rebuilding, sign painting and lettering shops, computer software production, and the production of motion picture films (including video tapes) are classified in Services. Most repair activities are classified as Services. However, some repair activity such as shipbuilding and boatbuilding and repair, the rebuilding of machinery and equipment on a factory basis, and machine shop repair are classified as manufacturing.

How SIC Classifications Effect Your Commercial Insurance Cost

But how does your Manufacturing – SIC Division D – For Commercial Insurance classification affect your premium and insurance cost? Insurers selling commercial insurance use SIC codes in many ways – to analyze and classify the businesses they insure, or choose not insure. Some small business SIC code classifications can result in you paying higher premiums for your business insurance. It is important that your business is classified properly.

SIC Major Group Structure

Following is a list of the Major Group codes and titles for Manufacturing – SIC Division D – For Commercial Insurance. Let’s look at some of the the SIC codes under your classification:

Major Group 20: Food And Kindred Products
Major Group 21: Tobacco Products
Major Group 22: Textile Mill Products
Major Group 23: Apparel And Other Finished Products Made From Fabrics And Similar Materials
Major Group 24: Lumber And Wood Products, Except Furniture
Major Group 25: Furniture And Fixtures
Major Group 26: Paper And Allied Products
Major Group 27: Printing, Publishing, And Allied Industries
Major Group 28: Chemicals And Allied Products
Major Group 29: Petroleum Refining And Related Industries
Major Group 30: Rubber And Miscellaneous Plastics Products
Major Group 31: Leather And Leather Products
Major Group 32: Stone, Clay, Glass, And Concrete Products
Major Group 33: Primary Metal Industries
Major Group 34: Fabricated Metal Products, Except Machinery And Transportation Equipment
Major Group 35: Industrial And Commercial Machinery And Computer Equipment
Major Group 36: Electronic And Other Electrical Equipment And Components, Except Computer Equipment
Major Group 37: Transportation Equipment
Major Group 38: Measuring, Analyzing, And Controlling Instruments; Photographic, Medical And Optical Goods; Watches And Clocks
Major Group 39: Miscellaneous Manufacturing Industries