Admitted vs Non-Admitted

An admitted insurance company is licensed by the state where it operates, following state department of insurance (DoI) regulations, including rate filings, cancellations, and making insolvency fund contributions. In the event an admitted carrier becomes insolvent, the DoI insolvency fund will step in to cover any claims for the remainder of a policy. Beltex’s cyber policy is admitted in all 50 states.

Non-admitted carriers (also called Surplus Lines), are not bound by the same regulations, allowing them to cover risks that admitted insurers reject or cannot handle. They are more flexible with pricing and non-renewals, often negotiating heavily, making them suitable for unique or high-risk situations. In covering professional services firms, Beltex mostly works with non-admitted carriers when acquiring cyber insurance for clients.

Choosing a non-admitted carrier does include drawbacks:

  1. Financial Risk and Stability: If a non-admitted carrier becomes insolvent, state insolvency funds won't cover your losses. Verify the carrier's stability through sources like the National Association of Insurance Commissioners (NAIC), A.M. Best, Standard & Poor's, or Fitch.

  2. Claims Handling: Non-admitted policies often differ significantly from admitted ones, so ensure that you have an understanding of the claims process.

  3. Cancellation Terms: Understand the carrier's cancellation and non-renewal policies, especially for non-payment or increased risk, and be aware of alternative coverage options if needed.

Financial Strength Ratings

Rating agencies grade each carriers’ financial strength, indicating their ability to meet financial obligations to policyholders. Beltex only works with B+ (good) and above carriers, and in the majority of cases will not place coverage with any carrier below A- (Excellent) ratings. Learn more at www.AmBest.com