Non-Admitted Carrier/Excess & Surplus Lines (E&S) Carrier

What is an Non-Admitted Carrier/Excess & Surplus Lines (E&S) Carrier?

 

An non-admitted insurance carrier is a company that provides insurance policies to individuals or businesses. They assume the financial risk of their policyholders by providing coverage for a variety of risks, such as property damage, liability, or bodily injury. Non-admitted carriers are not required to be licensed by the state, but are allowed to do business in that state. Sometimes, non-admitted carriers are also referred to as E&S or unlicensed carriers. However, E&S carriers are financially stable companies that are regulated in other ways. 

Non-admitted carriers are not bound by most of the rate and form regulations imposed on standard market companies. This allows them the flexibility to change the coverage offered and the rate charged. Non-admitted companies can do this without time constraints and financial costs associated with the filing process. This is good for both the company and the policyholder.

 

Understanding Non-Admitted Carrier/Excess & Surplus Lines (E&S) Carrier

 

Unlike an admitted carrier, non-admitted carriers are not backed by the state. They are not required to sell policies that adhere to the same standards as admitted carriers. However, non-admitted carriers are often still regulated by states they do business in.

Due to these less rigid standards, non-admitted carriers have more flexibility when designing coverage, selling policies, and writing risks. Companies that are struggling to find coverage in the admitted market often have more success in the non-admitted market.