SIC Code
A SIC code (Standard Industrial Classification) is a four-digit numerical code that categorizes businesses by their primary type of economic activity. Originally developed by the U.S. government in 1937 and officially replaced by the NAICS system in 1997, SIC codes persist throughout the insurance industry because many carriers, rating bureaus, and agency management systems were built around them and never fully transitioned. The SEC and OSHA continue to use SIC codes for their own classification purposes. Agents encounter SIC codes on ACORD forms, carrier portals, and underwriting guidelines daily.
Why SIC Codes Matter for Independent Agents
Despite being nearly three decades past their official retirement, SIC codes remain embedded in commercial insurance workflows. The ACORD 125 — the master commercial insurance application — includes a field for SIC code right next to the NAICS code field. Many carrier portals, particularly those built on older technology platforms, still use SIC codes as their primary business classification input. Some carriers accept both; a few still only accept SIC.
This creates a practical problem for agents: you need to know both systems. A client tells you they run a janitorial cleaning business. The NAICS code is 561720 (Janitorial Services). The SIC code is 7349 (Services to Buildings and Dwellings, Not Elsewhere Classified). These numbers do not map one-to-one because the systems have different structures and granularity. Getting the wrong code entered — or entering a NAICS code into a SIC field — can result in incorrect rating, appetite mismatches, or outright submission rejection.
The ACORD 125 asks for both codes for exactly this reason. When completing a submission, agents should verify both the NAICS and SIC codes for the applicant's business. The U.S. Department of Labor (OSHA) and the SEC both maintain SIC code lookup tools. Cross-referencing with the Census Bureau's NAICS-to-SIC concordance table helps catch mismatches before submission.
How SIC Codes Work
SIC codes follow a four-digit hierarchical structure that is simpler but less granular than the six-digit NAICS system:
- First two digits — Major industry group (e.g., 15 = Building Construction - General Contractors, 73 = Business Services, 58 = Eating and Drinking Places)
- Third digit — Industry group within the major group
- Fourth digit — Specific industry
There are approximately 1,004 four-digit SIC codes across 11 divisions (Agriculture through Public Administration, plus Nonclassifiable Establishments). Compare that to the approximately 1,012 six-digit NAICS codes in the 2022 revision — the newer system provides finer granularity, which is one reason the government replaced SIC in the first place.
Here are SIC-to-NAICS examples that commercial agents encounter frequently:
| Business Type | SIC Code | NAICS Code |
|---|---|---|
| Plumbing, Heating, AC | 1711 | 238220 |
| Electrical Work | 1731 | 238210 |
| Full-Service Restaurant | 5812 | 722511 |
| Insurance Agents/Brokers | 6411 | 524210 |
| Computer Programming | 7371 | 541511 |
| Janitorial Services | 7349 | 561720 |
| Physician's Office | 8011 | 621111 |
Where SIC codes still dominate in insurance. Several areas of the industry rely heavily on SIC codes:
- ISO (Insurance Services Office) — ISO's commercial lines rating programs, including the Business Owners Policy (BOP) program, use SIC-based classification systems. When a carrier rates a BOP through an ISO-based program, the SIC code drives the class assignment.
- D&B (Dun & Bradstreet) reports — Credit and business information reports pulled during underwriting display SIC codes as the primary classification. Underwriters use these to verify that the business described in the application matches the business on record.
- Legacy carrier systems — Carriers that built their underwriting platforms in the 1990s or early 2000s often hard-coded SIC-based logic. Even after front-end modernization, the back-end rating engine may still translate every NAICS code to a SIC code before processing.
- Workers' compensation crosswalks — Some state rating bureaus maintain SIC-to-class-code mapping tables that help underwriters assign the correct workers' comp classification when the application only provides a SIC or NAICS code.
Common agent mistakes with SIC codes. The most frequent error is selecting a SIC code that is too broad or too narrow for the actual business operation. SIC 1731 (Electrical Work) covers everything from residential rewiring to high-voltage industrial installations — two very different risk profiles. When a carrier's system uses the SIC code to drive initial pricing, an imprecise code can produce a quote that is either uncompetitively high or unrealistically low, both of which create problems at binding or audit.
Top 50 SIC Codes for Commercial Insurance
The following table covers the SIC codes that independent agents encounter most frequently when quoting commercial lines. These are the classifications that appear repeatedly on ACORD 125 applications, carrier portals, and agency management systems. The insurance needs column reflects the most commonly required coverages, not an exhaustive list — actual requirements vary by account size, state, and carrier appetite.
Risk tier definitions:
- Standard — Broadly appetized by most carriers, competitive pricing widely available
- Moderate — Available from many carriers but may require supplemental applications or have specific underwriting requirements
- High — Limited carrier appetite, specialty market placement common, higher minimum premiums typical
| SIC Code | Description | Common Insurance Needs | Risk Tier |
|---|---|---|---|
| 1521 | General Contractors — Residential Buildings | GL, WC, BOP, Inland Marine, Auto | Moderate |
| 1522 | General Contractors — Commercial Buildings | GL, WC, Inland Marine, Umbrella, Auto | High |
| 1541 | General Contractors — Industrial Buildings | GL, WC, Inland Marine, Umbrella, Auto | High |
| 1711 | Plumbing, Heating, and Air Conditioning | GL, WC, BOP, Auto, Inland Marine | Standard |
| 1721 | Painting and Paper Hanging | GL, WC, BOP, Auto | Standard |
| 1731 | Electrical Work | GL, WC, BOP, Auto, Inland Marine | Moderate |
| 1741 | Masonry, Stone Setting, and Other Stonework | GL, WC, BOP, Auto | Moderate |
| 1751 | Carpentry Work | GL, WC, BOP, Auto, Inland Marine | Standard |
| 1761 | Roofing, Siding, and Sheet Metal Work | GL, WC, Auto, Umbrella | High |
| 1771 | Concrete Work | GL, WC, Auto, Inland Marine | Moderate |
| 1794 | Excavation Work | GL, WC, Auto, Inland Marine, Umbrella | High |
| 2752 | Commercial Printing, Lithographic | GL, WC, BOP, Property | Standard |
| 3599 | Industrial and Commercial Machinery, NEC | GL, WC, Property, Product Liability | Moderate |
| 4215 | Courier Services (Except by Air) | GL, WC, Auto, Cargo | Moderate |
| 4731 | Arrangement of Transportation of Freight | GL, E&O, Cargo, Auto | Moderate |
| 5031 | Lumber, Plywood, Millwork | GL, WC, Property, Auto | Standard |
| 5065 | Electronic Parts and Equipment | GL, BOP, Property, Inland Marine | Standard |
| 5084 | Industrial Machinery and Equipment | GL, BOP, Product Liability, Auto | Standard |
| 5211 | Lumber and Other Building Materials Dealers | GL, WC, Property, Auto | Standard |
| 5411 | Grocery Stores | GL, WC, BOP, Property, EPLI | Standard |
| 5511 | Motor Vehicle Dealers (New and Used) | GL, Garage, Dealer Open Lot, WC | Moderate |
| 5812 | Eating Places (Restaurants) | GL, WC, BOP, Liquor Liability, EPLI | Standard |
| 5813 | Drinking Places (Bars and Taverns) | GL, WC, Liquor Liability, Assault & Battery | High |
| 5912 | Drug Stores and Proprietary Stores | GL, WC, BOP, Professional Liability | Standard |
| 5944 | Jewelry Stores | GL, BOP, Inland Marine (Jewelers Block) | Moderate |
| 5999 | Retail Stores, NEC | GL, WC, BOP, Property | Standard |
| 6411 | Insurance Agents, Brokers, and Service | GL, E&O, BOP, Cyber | Standard |
| 6512 | Operators of Apartment Buildings | GL, Property, Umbrella | Standard |
| 6531 | Real Estate Agents and Managers | GL, E&O, BOP, Cyber | Standard |
| 6552 | Land Subdividers and Developers | GL, Property, Umbrella, E&O | Moderate |
| 7011 | Hotels and Motels | GL, WC, Property, Umbrella, Liquor Liability | Moderate |
| 7211 | Power Laundries, Family and Commercial | GL, WC, BOP, Property | Standard |
| 7231 | Beauty Shops | GL, BOP, Professional Liability | Standard |
| 7349 | Services to Buildings and Dwellings (Janitorial) | GL, WC, BOP, Auto | Standard |
| 7359 | Equipment Rental and Leasing | GL, WC, Inland Marine, Auto, Umbrella | Moderate |
| 7371 | Computer Programming, Data Processing | GL, E&O (Tech), BOP, Cyber | Standard |
| 7374 | Computer Processing and Data Preparation | GL, E&O (Tech), BOP, Cyber | Standard |
| 7381 | Investigation and Security Services | GL, WC, Auto, Professional Liability | Moderate |
| 7382 | Home Health Care Services | GL, WC, Professional Liability, Auto | Moderate |
| 7389 | Services Allied With Motion Picture Production | GL, E&O, BOP, Inland Marine | Moderate |
| 7999 | Amusement and Recreation Services, NEC | GL, WC, Property, Participant Accident | High |
| 8011 | Offices and Clinics of Doctors of Medicine | GL, Medical Malpractice, BOP, Cyber, EPLI | Moderate |
| 8021 | Offices and Clinics of Dentists | GL, Professional Liability, BOP, Cyber | Standard |
| 8042 | Offices and Clinics of Optometrists | GL, Professional Liability, BOP | Standard |
| 8049 | Offices and Clinics of Other Health Practitioners | GL, Professional Liability, BOP, Cyber | Standard |
| 8111 | Legal Services | GL, LPL, BOP, Cyber, EPLI | Standard |
| 8211 | Elementary and Secondary Schools | GL, WC, Property, Abuse & Molestation, D&O | Moderate |
| 8351 | Child Day Care Services | GL, WC, Professional Liability, Abuse & Molestation | High |
| 8711 | Engineering Services | GL, E&O, BOP, Cyber | Standard |
| 8721 | Accounting, Auditing, and Bookkeeping Services | GL, E&O, BOP, Cyber | Standard |
How to Use This Table
When a client provides their business description but not their SIC code, this table serves as a quick reference for identifying the correct classification and anticipating the coverage lines you will need to quote. A few practical notes:
- Verify, do not assume. A business may describe itself as "construction" but actually fall under a specific trade code like 1711 or 1731 rather than the general contractor codes. The difference in carrier appetite and pricing is significant.
- Risk tier is a starting point. A "high" risk tier means fewer carriers will quote it through standard channels — not that the account is unplaceable. Wholesale and surplus lines markets handle these classes routinely.
- Cross-reference with NAICS. If a carrier portal asks for NAICS instead of SIC, use the Census Bureau concordance or the mapping table earlier in this article to convert.
- Watch for "NEC" codes. Codes ending in 9 (like 3599 or 5999) are catch-all "Not Elsewhere Classified" categories. These are appropriate when no more specific code exists, but carriers may request additional documentation to understand the actual operations.
Frequently Asked Questions
What is a SIC code in insurance? A SIC (Standard Industrial Classification) code is a four-digit number that classifies businesses by their primary type of economic activity. Originally developed in 1937 and officially replaced by the NAICS system in 1997, SIC codes persist throughout the insurance industry because many carrier systems, rating platforms, and agency management systems were built around them and never fully transitioned. The ACORD 125 application asks for both SIC and NAICS codes because different carrier systems require different inputs.
Why do SIC codes still matter if NAICS replaced them nearly 30 years ago? Legacy carrier systems matter. Carriers that built their underwriting platforms in the 1990s or early 2000s often hard-coded SIC-based logic, and even after front-end modernization the back-end rating engine may still translate every input to a SIC code before processing. ISO's BOP rating program uses SIC-based classification. D&B business credit reports display SIC codes as the primary classification. Workers' compensation state bureaus maintain SIC-to-class-code crosswalks. Agents who only know NAICS codes will encounter submission problems at carriers that still require SIC input.
How do I find the SIC code for a specific type of business? The U.S. Department of Labor (OSHA) and the SEC both maintain SIC code lookup tools online. For common commercial insurance classes: plumbing, heating, and AC is SIC 1711 (NAICS 238220); electrical work is SIC 1731 (NAICS 238210); full-service restaurants is SIC 5812 (NAICS 722511); janitorial services is SIC 7349 (NAICS 561720). The Census Bureau maintains a NAICS-to-SIC concordance table that helps cross-reference codes when you know one system but need the other.
What is the most common SIC code mistake agents make? Selecting a code that is too broad for the actual business operation. SIC 1731 (Electrical Work) covers everything from residential rewiring to high-voltage industrial installations — very different risk profiles that may have very different carrier appetite and pricing. When a carrier's system uses the SIC code to drive initial pricing and appetite filtering, an imprecise code can produce a quote that is uncompetitively high (costly the account to a competitor) or unrealistically low (creating audit problems). Using the most specific SIC code that accurately describes the insured's primary operations always produces better results than defaulting to a broad category.
Related Terms
- NAICS Code — The six-digit classification system that officially replaced SIC codes and is used by newer carrier platforms and government databases
- NCCI Class Code — Workers' compensation classification codes that are separate from both SIC and NAICS but often cross-referenced during underwriting
- Risk Classification — The overall process of categorizing commercial risks, which uses SIC codes, NAICS codes, and carrier-specific class systems as inputs