Admitted Carriers vs Non-Admitted Carriers - Understanding The Difference

Why Choose an Non-Admitted Carrier

Unfortunately, sometimes it is not a matter of choice, but the only option. There are certain characteristics of a risk that make it uninsurable with a standard carrier, i.e. claims, lapse in coverage, proximity to water, business type. As most people and companies are not in a position to self-insure their assets, they must turn to a non-admitted carrier, such as a Lloyd's London policy.

Below are some of the difference between an admitted company and non-admitted company.

ADMITTED COMPANY	NON-ADMITTED COMPANY
Closely regulated by the state	Insured must be declined by 3 admitted carriers
2. Backed by state insurance Guaranty Fund	2. May not be backed by state Guaranty Fund
3. Standard policy language and coverage terms	3. More exclusionary language and custom coverage
4. Held to industry standards on claims performance	4. Claims process can be prolonged
5. More regulated on non-renewals/cancellations	5. Less regulated on non-reneals/cancellations
6. More regulated on premium increases	6. Less regulated on premium increasese