Why Do Non-Admitted Insurance Carriers Exist?

Non-admitted insurance carriers exist to provide insurance when admitted carriers are not able to meet the insurance needs of all insurance buyers. Many specialized risks, such as California professional liability insurance (sometimes called California errors and omissions insurance) or those with frequent claims such as California contractors insurance, can represent high risk exposures that admitted carriers are not willing to accept for many reasons including constraints imposed by their admitted status. However, non-admitted carriers are generally well suited to provide these lines because they have greater flexibility in terms of coverage’s and pricing to cope with fluctuating underwriting conditions. Without non-admitted carriers, individuals seeking some high risk lines of insurance would not be able to purchase it.