Why NAICS Classification Is the Silent Hero of AI in Commercial Insurance

If you’ve ever had a carrier decline a submission after underwriting because of misclassified business activity, you know exactly how frustrating—and costly—it can be. 

In today’s insurance market, time kills deals. And nothing burns time faster than chasing the wrong carriers because the risk was misclassified from the start. 

That’s why, as AI tools become more integrated into coverage recommendations, risk analysis, and carrier matching, one thing matters more than most people realize: business classification. Or more specifically—getting NAICS codes right. 

At Linqura, we believe NAICS classification isn’t just a back-office technicality—it’s the foundation for every smart insurance decision you make.  

And we’re building the most accurate NAICS classification engine in the industry to prove it. 

The Real Cost of Getting It Wrong 

Let’s say a landscaping contractor walks into your office. On the surface, it’s straightforward: mowing lawns, laying mulch, trimming hedges. You classify them under NAICS 561730 – Landscaping Services. 

You shop the market, select a few carriers based on appetite, and submit the application. 

Then underwriting gets involved. 

That’s when you find out this “landscaper” also performs tree removal work. Climbing, chainsaws, bucket trucks, the whole nine yards. Suddenly, this isn’t just landscaping—it’s a height exposure. And the carrier you submitted to? They don’t touch tree work. They flat-out decline the risk. 

Now you’re back to square one. Scrambling to reclassify the business, identify new markets, re-engage with the client, and salvage your credibility.  

Meanwhile, the client’s expectations are shot, your pipeline is delayed, and you’ve wasted hours—if not days—on preventable rework. 

Sound familiar? 

Why NAICS Classification Is Foundational for AI Tools 

AI in insurance is only as good as the data you feed it. 

• Coverage recommendations?
• Carrier appetite matching?
• Exposure analysis?
• Risk scoring?

All of it depends on knowing what kind of business you’re actually insuring. If you start with the wrong classification, every recommendation that follows will be based on flawed assumptions. Garbage in, garbage out.

This is especially dangerous when using AI tools that feel fast and confident. If you enter “landscaper” and the AI spits out a BOP recommendation with general liability and inland marine—but doesn’t account for arborist-level exposures—you’re walking your client right into a claim that could be denied later. 

Accuracy in classification is the difference between proactive guidance and reactive cleanup. 

Enter LinqData: Business Classification Built for Insurance 

That’s exactly why we built LinqData, and why every Linqura customer gets access to the most advanced NAICS classification engine on the market—at no extra cost. 

LinqData doesn’t rely on simple keyword lookups or broad assumptions. It uses: 

• Firmographic data (like business name, address, size, revenue)
• Behavioral signals (website content, job listings, online reviews)
• Industry nuance (cross-referencing multiple NAICS layers and subcodes) 

…to identify what the business actually does—not just what they say they do. 

So if that landscaper also advertises “tree removal” on their site, LinqData will flag it, expand the classification, and surface the appropriate NAICS codes before you ever hit “submit” on a carrier application. 

This saves you time. 

It saves your client frustration. 

And it saves your reputation with underwriting teams. 

The Power of Pre-Qualification 

The best part? You don’t have to be a commercial lines veteran to spot tricky exposures anymore. Linqura turns every agent into a risk specialist—instantly. 

By running businesses through our classification engine upfront, you get: 

• Clear signals on what coverages might be needed
• Warnings on out-of-appetite risks
• Fewer surprises when the application reaches underwriting
• Faster submissions and higher bind rates 

Think of it as pre-underwriting for the modern agency. 

NAICS Codes Aren’t Sexy, But They’re Everything 

Let’s face it—no one wakes up excited to talk about classification codes. 

But in an industry built on matching risk with the right protection, there’s nothing more fundamental. NAICS codes are the connective tissue between the business and every tool, model, or carrier decision that follows. 

And in a world where AI is handling more of the heavy lifting, the accuracy of that initial classification is more critical than ever. One wrong assumption doesn’t just lead to a declined policy—it leads to broken trust, wasted effort, and lost revenue. 

Final Thought: Start Smart to Finish Fast 

You can’t scale intelligently without classifying accurately. It’s that simple. 

With Linqura and LinqData, you get enterprise-grade classification baked into your workflow. No extra tools. No additional fees. Just smarter submissions, fewer surprises, and more profitable relationships—with carriers and clients. 

Want to stop getting burned by rework and carrier declines? 
Start with better data. Start with Linqura. 

Ready to see how LinqData can upgrade your submission process. 

Visit Linqura.com and schedule a demo today.