An 'Admitted' insurance carrier is licensed and regulated by the state's insurance department. This means they must comply with all state regulations and contribute to the state's guaranty fund, which protects policyholders if the insurer goes bankrupt. In contrast, a 'Non-Admitted' carrier is not state-licensed or regulated, but they are legal and often used for specialized or high-risk coverage not available through admitted carriers.

Imagine your roofing franchise insurance cannot be placed with an admitted carrier due to the nature of the business. You might turn to a non-admitted carrier for this coverage. While this gives you access to coverage, it also means you won't have the state guarantee fund protection if the insurer faces financial difficulties.

Choosing between admitted and non-admitted carriers involves:

• Considering the specific needs and risks of your business.
• Understanding the trade-off between state protection and specialized coverage.
• Consulting with insurance professionals to make an informed decision.