TO HELP ALLEVIATE THE UNKNOWN, HERE ARE A FEW KEY ITEMS TO KEEP IN MIND ABOUT NON-ADMITTED INSURANCE COVERAGE:
1. Non-admitted markets aren’t inherently bad! These excess and surplus carriers are no longer just for niche, high-risk industries, and are now covering any risk deemed out of the standard market insurers’ appetites. If you are on a master policy, most of those have the backing of non-admitted markets. 2. Non-admitted markets aren’t necessarily going to be that much more expensive than admitted markets. It will come down to the characteristics of each individual risk. Some non-admitted markets even end up being less expensive. 3. Non-admitted markets can cover perils that admitted markets won’t! Because the non- admitted markets don’t have to work within the confines of state regulations, they are able to customize coverage, making them a bit more flexible in their policy offerings.
That being said, if the opportunity is available, placement with a standard admitted carrier is generally preferred, simply because if a carrier were to go insolvent, claim payouts would still be guaranteed. But for larger non-admitted markets (think Lloyds of London, Zurich), many, if not most of them, are still just as financially stable as the admitted markets. As a result, if your property falls outside standard market guidelines, securing coverage in the non-admitted market can still be a sound and reliable option.
SECURING COVERAGE IN THE NON-ADMITTED MARKET CAN STILL BE A SOUND AND RELIABLE OPTION.
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