Learn about Information – NAICS Code 51 – 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.
Information – NAICS Code 51
What’s the best way to describe your company’s business operations? Are you involved in the Information industry?
If so, then your business classification falls under Information – NAICS Code 51 – 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 51- Information – NAICS Manual
The Information sector comprises establishments engaged in the following processes: (a) producing and distributing information and cultural products, (b) providing the means to transmit or distribute these products as well as data or communications, and (c) processing data.
The main components of this sector are the publishing industries, including software publishing, and both traditional publishing and publishing exclusively on the Internet; the motion picture and sound recording industries; the broadcasting industries, including traditional broadcasting and broadcasting exclusively over the Internet; the telecommunications industries; and Web search portals, data processing industries, and the information services industries.
The expressions ‘information age’ and ‘global information economy’ are used with considerable frequency today. The general idea of an ‘information economy’ includes both the notion of industries primarily producing, processing, and distributing information, as well as the idea that every industry is using available information and information technology to reorganize and make themselves more productive. For the purposes of NAICS, it is the transformation of information into a commodity that is produced and distributed by a number of growing industries that is at issue.
Cultural products are those that directly express attitudes, opinions, ideas, values, and artistic creativity; provide entertainment; or offer information and analysis concerning the past and present. Included in this definition are popular, mass-produced products as well as cultural products that normally have a more limited audience, such as poetry books, literary magazines, or classical records.
The unique characteristics of information and cultural products, and of the processes involved in their production and distribution, distinguish the Information sector from the goods-producing and service-producing sectors. Some of these characteristics are:
- Unlike traditional goods, an ‘information or cultural product, such as an on-line newspaper or a television program, does not necessarily have tangible qualities, nor is it necessarily associated with a particular form. A movie can be shown at a movie theater, on a television broadcast, through video-on-demand or rented at a local video store. A sound recording can be aired on radio, embedded in multimedia products, or sold at a record store.
- Unlike traditional services, the delivery of these products does not require direct contact between the supplier and the consumer.
- The value of these products to the consumer lies in their informational, educational, cultural, or entertainment content, not in the format in which they are distributed. Most of these products are protected from unlawful reproduction by copyright laws.
- The intangible property aspect of information and cultural products makes the processes involved in their production and distribution very different from goods and services. Only those possessing the rights to these works are authorized to reproduce, alter, improve, and distribute them. Acquiring and using these rights often involves significant costs. In addition, technology is revolutionizing the distribution of these products. It is possible to distribute them in a physical form, via broadcast, or on-line.
- Distributors of information and cultural products can easily add value to the products they distribute. For instance, broadcasters add advertising not contained in the original product. This capacity means that unlike traditional distributors, they derive revenue not from sale of the distributed product to the final consumer, but from those who pay for the privilege of adding information to the original product. Similarly, a directory and mailing list publisher can acquire the rights to thousands of previously published newspaper and periodical articles and add new value by providing search and software and organizing the information in a way that facilitates research and retrieval. These products often command a much higher price than the original information.
The distribution modes for information commodities may either eliminate the necessity for traditional manufacture, or reverse the conventional order of manufacture-distribute: A newspaper distributed on-line, for example, can be printed locally or by the final consumer. Similarly, packaged software is available mainly on-line. The NAICS Information sector is designed to make such economic changes transparent as they occur, or to facilitate designing surveys that will monitor the new phenomena and provide data to analyze the changes.
Many of the industries in the NAICS Information sector are engaged in producing products protected by copyright law, or in distributing them (other than distribution by traditional wholesale and retail methods). Examples are traditional publishing industries, software and directory and mailing list publishing industries, and film and sound industries. Broadcasting and telecommunications industries and information providers and processors are also included in the Information.
How NAICS Classifications Effects Your Commercial Insurance Cost
But how does your Information – NAICS Code 51 – 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.
Following is a list of all the codes and titles. If the title is linked you can drill down for more information:
- 511110 Newspaper Publishers
- 511120 Periodical Publishers
- 511130 Book Publishers
- 511140 Directory and Mailing List Publishers
- 511191 Greeting Card Publishers
- 511199 All Other Publishers
- 511210 Software Publishers
- 512110 Motion Picture and Video Production
- 512120 Motion Picture and Video Distribution
- 512131 Motion Picture Theaters (except Drive-Ins)
- 512132 Drive-In Motion Picture Theaters
- 512191 Teleproduction and Other Postproduction Services
- 512199 Other Motion Picture and Video Industries
- 512230 Music Publishers
- 512240 Sound Recording Studios
- 512250 Record Production and Distribution
- 512290 Other Sound Recording Industries
- 515111 Radio Networks
- 515112 Radio Stations
- 515120 Television Broadcasting
- 515210 Cable and Other Subscription Programming
- 517311 Wired Telecommunications Carriers
- 517312 Wireless Telecommunications Carriers (except Satellite)
- 517410 Satellite Telecommunications
- 517911 Telecommunications Resellers
- 517919 All Other Telecommunications
- 518210 Data Processing, Hosting, and Related Services
- 519110 News Syndicates
- 519120 Libraries and Archives
- 519130 Internet Publishing and Broadcasting and Web Search Portals
- 519190 All Other Information Services
Information – NAICS Code 51 – For Commercial Insurance
We hope this information on Information – NAICS Code 51 – For Commercial Insurance has been helpful. Your classification determines how much you pay for your commercial insurance and much more.