Admitted Vs. Non-Admitted Carriers: What’s The Difference?

A non-admitted carrier, also known as an excess and surplus lines carrier, is a type of insurance company that operates outside of the traditional insurance market. These companies are not licensed to sell insurance in every state, and as a result, they are not subject to the same regulations and oversight as admitted carriers.

Admitted Carrier

An admitted carrier is an insurance company that has been licensed by a state's insurance department to sell insurance policies within that state. These companies are required to comply with state regulations and are eligible for state guarantees through programs such as the State Insurance Fund.

Non-Admitted Carrier

A non-admitted carrier, also known as an excess and surplus lines carrier, is a type of insurance company that operates outside of the traditional insurance market. These companies are not licensed to sell insurance in every state, and as a result, they are not subject to the same regulations and oversight as admitted carriers.

While this may sound concerning, non-admitted carriers play an important role in the insurance industry by providing coverage for higher-risk or specialty risks that may not be available from traditional insurance companies. They often specialize in specific types of coverage, such as hard-to-place commercial risks, or niche industries such as aviation or marine insurance.

Non-admitted carriers are also an option for individuals and businesses who have been denied coverage by traditional insurance companies due to their unique risk profile. However, it's important to note that these carriers are not backed by state guarantees, such as the State Insurance Fund, so policyholders may be at a greater risk in case of the carrier's financial instability.

It's important to consult with a knowledgeable insurance broker or agent to understand if a non-admitted carrier is the right choice for your insurance needs and to evaluate the carrier's financial stability and reputation.

Stephan "Steveo" Stewart

CEO and Co-founder

Horizon Insurance, LLC