NAICS Appetite Guide for Insurance Agents| Coterie

An agent submits what appears to be a simple consulting risk. Days later, the submission is still in underwriting review. The client follows up twice. No clear timeline. The opportunity moves to a competitor that could bind instantly. 

This guide explains how Coterie evaluates NAICS codes to determine instant eligibility, underwriting referral, or decline, so agents can pre-screen prospects, set accurate expectations, and avoid wasted submission time. 

How NAICS Codes Affect Insurance Eligibility 

Insurance carriers use NAICS (North American Industry Classification System) codes to determine underwriting appetite, pricing, coverage forms, and referral requirements. For agents, NAICS classification often determines whether a submission can bind instantly or requires underwriter review. 

Accurate NAICS classification: 

• Improves quote accuracy 

• Reduces underwriting referrals 

• Prevents post-bind audits and corrections 

• Helps agents maintain strong carrier relationships 

Misclassification can result in higher premiums, delayed approvals, or outright declines. 

What Is a NAICS Code? 

A NAICS code identifies a business based on its primary revenue-generating activity. If a company offers multiple services, the correct NAICS code reflects the activity that produces the majority of revenue, but not necessarily the service listed first on a website or application. 

NAICS is updated every five years to reflect changes in the U.S. economy, particularly growth in service-based and technology-driven industries. 
 

NAICS Code Structure (Agent Summary) 

NAICS codes use a six-digit hierarchy, where each additional digit adds specificity about business operations and risk exposure. More precise classification allows carriers to apply underwriting rules accurately and consistently. 

How Coterie Uses NAICS Codes for Instant Quoting 

Coterie uses NAICS classification as a core input in its automated underwriting process. When classification and risk factors align with appetite, agents receive instant bindable quotes without manual underwriting review. 

NAICS classification is used to: 

• Determine eligibility vs. referral vs. decline 

• Apply coverage rules and forms 

• Align pricing with historical loss data 

• Flag inconsistencies that may require clarification 

Automated NAICS Detection and Business Verification 

Coterie automatically detects six-digit NAICS codes and verifies business existence by cross-referencing agent input with publicly available data sources. This process reduces manual classification errors and flags inconsistencies early in the quoting workflow. 

Automated detection improves: 

• Classification accuracy 

• Consistency across submissions 

• Speed to bind for eligible risks 

Ask Kodiak Partnership for Appetite Matching 

Coterie partners with Ask Kodiak, an industry-standard appetite and eligibility platform by Ivans used by carriers and agencies. Ask Kodiak’s High-Definition Classification system supports more than 20,000 sub-descriptions beneath standard NAICS codes, enabling more precise appetite decisions. 

This allows agents to: 

• Confirm eligibility before submitting 

• See product recommendations in real time 

• Avoid applications that will trigger referral or decline 

• Match risks to appetite with greater confidence 

Eligibility Outcomes at Coterie Explained 

1. Instant Eligibility 

Businesses that meet NAICS, size, and risk criteria receive bindable quotes immediately. No underwriting review is required. 

2. Decline 

Certain industries fall outside of Coterie’s underwriting appetite due to elevated or unpredictable risk. These risks are declined early to prevent wasted submission time. 

Industries Commonly Eligible for Instant Quotes 

Eligibility depends on the full risk profile, not just the NAICS code. However, office-based and low physical-risk businesses are more likely to qualify for instant binding. 

Commonly eligible categories include: 

• Professional services (consulting, accounting, marketing) 

• Technology and software services 

• IT and managed services 

• Certain retail and wholesale classes 

• Many home-based professional businesses 

Agents should always confirm eligibility using appetite tools, as appetite evolves with loss experience and market conditions. 

Business Size and Revenue Guidelines 

Eligibility guidelines for Coterie policies include: 

• 50 or fewer employees (max 15 for contractors) 

• Annual revenue $10 million or less (max $5million for contractors) 

• One location per policy 

• No more than 2 losses (none > $15,000 in the last 5 years) 

• No prior cancellations, non-renewals, or bankruptcy 

Unlike many carriers, home-based businesses may qualify with Coterie depending on class and risk profile. 

Coverage Types Available for Instant Binding 

Eligible businesses may qualify for: 

• General Liability: Covers third-party bodily injury, property damage, and personal injury 

Industries Commonly Referred or Declined 

Industries with higher loss frequency or severity are often declined outright. Examples may include: 

• Casinos and gaming operations 

• Certain manufacturing or heavy operational risks 

Each carrier maintains its own prohibited and restricted class list. A decline from one carrier does not indicate universal ineligibility. 

How to Check Appetite Before Submitting 

Pre-submission appetite verification reduces wasted effort and improves placement efficiency. Digital appetite tools allow agents to confirm eligibility using NAICS codes or business descriptions before starting an application. 

Using appetite tools helps: 

• Avoid unnecessary referrals 

• Set accurate client expectations 

• Reduce unquoted submissions 

• Preserve carrier relationships 

Coterie Appetite Resources for Agents 

Agents can access: 

• Real-time eligibility prompts during quoting 

These tools surface eligibility issues early, before time is invested in a full submission. 

Key Takeaway for Agents 

Understanding NAICS appetite rules upfront allows agents to: 

• Avoid submission friction that leads to lost business 

Coterie’s automated underwriting and appetite tools are designed to help agents move from prospect to policy efficiently, all without sacrificing accuracy or placement quality. Ready to get started with Coterie? Sign up today! 

Frequently Asked Questions