Learn about Mining – NAICS Code 21 – 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.
Mining – NAICS Code 21
What’s the best way to describe your company’s business operations? Are you involved in the Mining industry?
If so, then your business classification falls under Mining – NAICS Code 21 – 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 21 – Mining, Quarrying, and Oil and Gas Extraction – NAICS Manual
The Mining, Quarrying, and Oil and Gas Extraction sector comprises establishments that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. The term mining is used in the broad sense to include quarrying, well operations, beneficiating (e.g., crushing, screening, washing, and flotation), and other preparation customarily performed at the mine site, or as a part of mining activity.
The Mining, Quarrying, and Oil and Gas Extraction sector distinguishes two basic activities: mine operation and mining support activities. Mine operation includes establishments operating mines, quarries, or oil and gas wells on their own account or for others on a contract or fee basis. Mining support activities include establishments that perform exploration (except geophysical surveying) and/or other mining services on a contract or fee basis (except mine site preparation and construction of oil/gas pipelines).
Establishments in the Mining, Quarrying, and Oil and Gas Extraction sector are grouped and classified according to the natural resource mined or to be mined. Industries include establishments that develop the mine site, extract the natural resources, and/or those that beneficiate (i.e., prepare) the mineral mined. Beneficiation is the process whereby the extracted material is reduced to particles that can be separated into mineral and waste, the former suitable for further processing or direct use. The operations that take place in beneficiation are primarily mechanical, such as grinding, washing, magnetic separation, and centrifugal separation. In contrast, manufacturing operations primarily use chemical and electrochemical processes, such as electrolysis and distillation.
However, some treatments, such as heat treatments, take place in both the beneficiation and the manufacturing (i.e., smelting/refining) stages. The range of preparation activities varies by mineral and the purity of any given ore deposit. While some minerals, such as petroleum and natural gas, require little or no preparation, others are washed and screened, while yet others, such as gold and silver, can be transformed into bullion before leaving the mine site.
Mining, beneficiating, and manufacturing activities often occur in a single location. Separate receipts will be collected for these activities whenever possible. When receipts cannot be broken out between mining and manufacturing, establishments that mine or quarry nonmetallic minerals, and then beneficiate the nonmetallic minerals into more finished manufactured products are classified based on the primary activity of the establishment. A mine that manufactures a small amount of finished products will be classified in Sector 21, Mining, Quarrying, and Oil and Gas Extraction. An establishment that mines whose primary output is a more finished manufactured product will be classified in Sector 31-33, Manufacturing.
How NAICS Classifications Effects Your Commercial Insurance Cost
But how does your Mining – NAICS Code 21 – 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:
- 211120 Crude Petroleum Extraction
- 211130 Natural Gas Extraction
- 212111 Bituminous Coal and Lignite Surface Mining
- 212112 Bituminous Coal Underground Mining
- 212113 Anthracite Mining
- 212210 Iron Ore Mining
- 212221 Gold Ore Mining
- 212222 Silver Ore Mining
- 212230 Copper, Nickel, Lead, and Zinc Mining
- 212291 Uranium-Radium-Vanadium Ore Mining
- 212299 All Other Metal Ore Mining
- 212311 Dimension Stone Mining and Quarrying
- 212312 Crushed and Broken Limestone Mining and Quarrying
- 212313 Crushed and Broken Granite Mining and Quarrying
- 212319 Other Crushed and Broken Stone Mining and Quarrying
- 212321 Construction Sand and Gravel Mining
- 212322 Industrial Sand Mining
- 212324 Kaolin and Ball Clay Mining
- 212325 Clay and Ceramic and Refractory Minerals Mining
- 212391 Potash, Soda, and Borate Mineral Mining
- 212392 Phosphate Rock Mining
- 212393 Other Chemical and Fertilizer Mineral Mining
- 212399 All Other Nonmetallic Mineral Mining
- 213111 Drilling Oil and Gas Wells
- 213112 Support Activities for Oil and Gas Operations
- 213113 Support Activities for Coal Mining
- 213114 Support Activities for Metal Mining
- 213115 Support Activities for Nonmetallic Minerals (except Fuels) Mining
Mining – NAICS Code 21 – For Commercial Insurance
We hope this information on Mining – NAICS Code 21 – For Commercial Insurance has been helpful. Your classification determines how much you pay for your commercial insurance and much more.