Learn about Wholesale Trade – NAICS Code 42 – 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.
Wholesale Trade – NAICS Code 42
What’s the best way to describe your company’s business operations? Are you involved in the Wholesale Trade industry?
If so, then your business classification falls under Wholesale Trade – NAICS Code 42 – 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 42 – Wholesale Trade – NAICS Manual
The Wholesale Trade sector comprises establishments engaged in wholesaling merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. The merchandise described in this sector includes the outputs of agriculture, mining, manufacturing, and certain information industries, such as publishing.
The wholesaling process is an intermediate step in the distribution of merchandise. Wholesalers are organized to sell or arrange the purchase or sale of (a) goods for resale (i.e., goods sold to other wholesalers or retailers), (b) capital or durable nonconsumer goods, and (c) raw and intermediate materials and supplies used in production.
Wholesalers sell merchandise to other businesses and normally operate from a warehouse or office. These warehouses and offices are characterized by having little or no display of merchandise. In addition, neither the design nor the location of the premises is intended to solicit walk-in traffic. Wholesalers do not normally use advertising directed to the general public. Customers are generally reached initially via telephone, in-person marketing, or by specialized advertising that may include Internet and other electronic means. Follow-up orders are either vendor-initiated or client-initiated, generally based on previous sales, and typically exhibit strong ties between sellers and buyers. In fact, transactions are often conducted between wholesalers and clients that have long-standing business relationships.
This sector comprises two main types of wholesalers: merchant wholesalers that sell goods on their own account and business-to-business electronic markets, agents, and brokers that arrange sales and purchases for others generally for a commission or fee.
(1) Establishments that sell goods on their own account are known as wholesale merchants, distributors, jobbers, drop shippers, and import/export merchants. Also included as wholesale merchants are sales offices and sales branches (but not retail stores) maintained by manufacturing, refining, or mining enterprises apart from their plants or mines for the purpose of marketing their products and group purchasing organizations (e.g., purchasing and selling goods on their own account). Merchant wholesale establishments typically maintain their own warehouse, where they receive and handle goods for their customers. Goods are generally sold without transformation, but may include integral functions, such as sorting, packaging, labeling, and other marketing services.
(2) Establishments arranging for the purchase or sale of goods owned by others or purchasing goods, generally on a commission basis are known as business-to-business electronic markets, agents and brokers, commission merchants, import/export agents and brokers, auction companies, group purchasing organizations (e.g., purchasing or arranging for the purchases of goods owned by others), and manufacturers’ representatives. These establishments operate from offices and generally do not own or handle the goods they sell.
Some wholesale establishments may be connected with a single manufacturer and promote and sell the particular manufacturer’s products to a wide range of other wholesalers or retailers. Other wholesalers may be connected to a retail chain, or limited number of retail chains, and only provide a variety of products needed by that particular retail operation(s). These wholesalers may obtain the products from a wide range of manufacturers. Still other wholesalers may not take title to the goods, but act as agents and brokers for a commission.
Although, in general, wholesaling normally denotes sales in large volumes, durable nonconsumer goods may be sold in single units. Sales of capital or durable nonconsumer goods used in the production of goods and services, such as farm machinery, medium- and heavy-duty trucks, and industrial machinery, are always included in wholesale trade.
How NAICS Classifications Effects Your Commercial Insurance Cost
But how does your Wholesale Trade – NAICS Code 42 – 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:
- 423110 Automobile and Other Motor Vehicle Merchant Wholesalers
- 423120 Motor Vehicle Supplies and New Parts Merchant Wholesalers
- 423130 Tire and Tube Merchant Wholesalers
- 423140 Motor Vehicle Parts (Used) Merchant Wholesalers
- 4232 Furniture and Home Furnishing Merchant Wholesalers
- 423210 Furniture Merchant Wholesalers
- 423220 Home Furnishing Merchant Wholesalers
- 4233 Lumber and Other Construction Materials Merchant Wholesalers
- 423310 Lumber, Plywood, Millwork, and Wood Panel Merchant Wholesalers
- 423320 Brick, Stone, and Related Construction Material Merchant Wholesalers
- 423330 Roofing, Siding, and Insulation Material Merchant Wholesalers
- 423390 Other Construction Material Merchant Wholesalers
- 4234 Professional and Commercial Equipment and Supplies Merchant Wholesalers
- 423410 Photographic Equipment and Supplies Merchant Wholesalers
- 423420 Office Equipment Merchant Wholesalers
- 423430 Computer and Computer Peripheral Equipment and Software Merchant Wholesalers
- 423440 Other Commercial Equipment Merchant Wholesalers
- 423450 Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers
- 423460 Ophthalmic Goods Merchant Wholesalers
- 423490 Other Professional Equipment and Supplies Merchant Wholesalers
- 4235 Metal and Mineral (except Petroleum) Merchant Wholesalers
- 423510 Metal Service Centers and Other Metal Merchant Wholesalers
- 423520 Coal and Other Mineral and Ore Merchant Wholesalers
- 4236 Household Appliances and Electrical and Electronic Goods Merchant Wholesalers
- 423610 Electrical Apparatus and Equipment, Wiring Supplies, and Related Equipment Merchant Wholesalers
- 423620 Household Appliances, Electric Housewares, and Consumer Electronics Merchant Wholesalers
- 423690 Other Electronic Parts and Equipment Merchant Wholesalers
- 4237 Hardware, and Plumbing and Heating Equipment and Supplies Merchant Wholesalers
- 423710 Hardware Merchant Wholesalers
- 423720 Plumbing and Heating Equipment and Supplies (Hydronics) Merchant Wholesalers
- 423730 Warm Air Heating and Air-Conditioning Equipment and Supplies Merchant Wholesalers
- 423740 Refrigeration Equipment and Supplies Merchant Wholesalers
- 4238 Machinery, Equipment, and Supplies Merchant Wholesalers
- 423810 Construction and Mining (except Oil Well) Machinery and Equipment Merchant Wholesalers
- 423820 Farm and Garden Machinery and Equipment Merchant Wholesalers
- 423830 Industrial Machinery and Equipment Merchant Wholesalers
- 423840 Industrial Supplies Merchant Wholesalers
- 423850 Service Establishment Equipment and Supplies Merchant Wholesalers
- 423860 Transportation Equipment and Supplies (except Motor Vehicle) Merchant Wholesalers
- 4239 Miscellaneous Durable Goods Merchant Wholesalers
- 423910 Sporting and Recreational Goods and Supplies Merchant Wholesalers
- 423920 Toy and Hobby Goods and Supplies Merchant Wholesalers
- 423930 Recyclable Material Merchant Wholesalers
- 423940 Jewelry, Watch, Precious Stone, and Precious Metal Merchant Wholesalers
- 423990 Other Miscellaneous Durable Goods Merchant Wholesalers
- 4241 Paper and Paper Product Merchant Wholesalers
- 424110 Printing and Writing Paper Merchant Wholesalers
- 424120 Stationery and Office Supplies Merchant Wholesalers
- 424130 Industrial and Personal Service Paper Merchant Wholesalers
- 4242 Drugs and Druggists’ Sundries Merchant Wholesalers
- 424210 Drugs and Druggists’ Sundries Merchant Wholesalers
- 4243 Apparel, Piece Goods, and Notions Merchant Wholesalers
- 424310 Piece Goods, Notions, and Other Dry Goods Merchant Wholesalers
- 424320 Men’s and Boys’ Clothing and Furnishings Merchant Wholesalers
- 424330 Women’s, Children’s, and Infants’ Clothing and Accessories Merchant Wholesalers
- 424340 Footwear Merchant Wholesalers
- 4244 Grocery and Related Product Merchant Wholesalers
- 424410 General Line Grocery Merchant Wholesalers
- 424420 Packaged Frozen Food Merchant Wholesalers
- 424430 Dairy Product (except Dried or Canned) Merchant Wholesalers
- 424440 Poultry and Poultry Product Merchant Wholesalers
- 424450 Confectionery Merchant Wholesalers
- 424460 Fish and Seafood Merchant Wholesalers
- 424470 Meat and Meat Product Merchant Wholesalers
- 424480 Fresh Fruit and Vegetable Merchant Wholesalers
- 424490 Other Grocery and Related Products Merchant Wholesalers
- 4245 Farm Product Raw Material Merchant Wholesalers
- 424510 Grain and Field Bean Merchant Wholesalers
- 424520 Livestock Merchant Wholesalers
- 424590 Other Farm Product Raw Material Merchant Wholesalers
- 4246 Chemical and Allied Products Merchant Wholesalers
- 424610 Plastics Materials and Basic Forms and Shapes Merchant Wholesalers
- 424690 Other Chemical and Allied Products Merchant Wholesalers
- 4247 Petroleum and Petroleum Products Merchant Wholesalers
- 424710 Petroleum Bulk Stations and Terminals
- 424720 Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals)
- 4248 Beer, Wine, and Distilled Alcoholic Beverage Merchant Wholesalers
- 424810 Beer and Ale Merchant Wholesalers
- 424820 Wine and Distilled Alcoholic Beverage Merchant Wholesalers
- 4249 Miscellaneous Nondurable Goods Merchant Wholesalers
- 424910 Farm Supplies Merchant Wholesalers
- 424920 Book, Periodical, and Newspaper Merchant Wholesalers
- 424930 Flower, Nursery Stock, and Florists’ Supplies Merchant Wholesalers
- 424940 Tobacco and Tobacco Product Merchant Wholesalers
- 424950 Paint, Varnish, and Supplies Merchant Wholesalers
- 424990 Other Miscellaneous Nondurable Goods Merchant Wholesalers
- 4251 Wholesale Electronic Markets and Agents and Brokers
- 425110 Business to Business Electronic Markets
- 425120 Wholesale Trade Agents and Brokers
Wholesale Trade – NAICS Code 42 – For Commercial Insurance
We hope this information on Wholesale Trade – NAICS Code 42 – For Commercial Insurance has been helpful. Your classification determines how much you pay for your commercial insurance and much more.