An admitted insurance company has been approved by a state’s insurance department, whereas a non-admitted insurance company is not backed by the state.
An admitted insurance company is backed by the state, which means:
A non-admitted insurance company isn’t approved by the state, which means:
There are situations when both admitted and non-admitted insurance companies may be beneficial for business owners.
For business owners, buying from an admitted carrier means three things:
Buying from a non-admitted carrier may be beneficial for businesses that face risks that the standard insurance market won’t cover. For example, if your business is located along the Gulf Coast, it may be difficult to find an admitted insurer to cover property for hurricane damage.
In addition to admitted and non-admitted status, insurance companies are given letter grades from A++ to F, which work the same as classroom grades. These grades are calculated by a credit rating firm called A.M. Best, which has been rating insurance companies since 1906.
A non-admitted insurance company with a high rating is most likely a solid bet for insuring your company, while an admitted carrier with a C rating or below could be risky.
Insureon works only with top-rated admitted and non-admitted carriers to help business owners find the appropriate coverage at affordable rates.
Insureon helps small business owners compare business insurance quotes with one easy online application. Start an application today to select the right policy limits for your risk exposures.