What is a Non-admitted Insurance Company and What Does it Mean To Me?

Описание: It's common for business owners to secure coverage from non-admitted insurance companies, particularly those in industries with above-normal risk. But what is non admitted insurance, and what does it mean to the policyholder? If you're watching our video, I think you'll be happy to know that non-admitted DOES NOT have any relation to the insurance company's financial strength.

If you're familiar with business insurance, you know Lloyd's of London. Lloyd's of London is an excellent example of an insurance company that operates in the excess and surplus lines marketplace and transacts business in many states as a non-admitted insurance company.

In this video, Mike explains what it means to transact business on a non-admitted basis. He also explains that non-admitted has nothing to do with the financial strength of insurance company. In fact, many insurance companies transacting as non-admitted insurers are larger in size and more financially stable than admitted carriers.

In California, businesses in construction, manufacturing, hospitality, and livery have experience with non-admitted insurers. California has a robust excess and surplus lines insurance market, especially because insurance carriers opt to transact as non-admitted insurance companies to avoid red tape and difficult regulation. Common insurance companies that file as non-admitted in California include Lloyd's of London, Navigators, Colony, and Amtrust, in addition to the surplus lines divisions of Nationwide (Scottsdale), Liberty Mutual (Ironshore), and The Hartford (Maxum).

Many people confused non-admitted insurance programs with those such as the National Flood Insurance Program. Our video will explain what it means to operate as a non-admitted insurer and not participate in the Guaranty Fund.

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