Insurance

Insurance

Insurance in the United States comes in many different categories and varies in coverages depending on the type of insurance, the type of insurance company (admitted vs. non-admitted) and the State in which you purchase the insurance.

There are literally hundreds of insurance categories and not all insurance companies offer all types of insurance.

Personal Insurance

When we think of “personal” insurance we are often referring to home, auto, life, health, annuity, dental and recreational vehicles.

There are some exception to the use “business in regards to home and auto” but these in-depth discussion are best discussed with an agent or broker due to the specifics to each individuals situation.

In general business is excluded from home and auto policies. Those exception in some cases are an in home business such as a person who teaches piano or, in the case of auto, a real estate agent.  But remember, “you” must ask your agent or broker about the insurance they sell and service.

It has been a “dangerous” trend to allow individuals to purchase their own insurance direct online in our opinion as who is to blame if “you” do not understand the complex nature of insurance terms such as “exclusions” and who reads all that any way?

Commercial Insurance

Commercial or Business insurance is a vast subject.  There are ISO template policies such as BOP’s (business owner package) and non-bop policies that are not written on ISO form.  It can get complex.

Many of the BOP policies are segmented into the following classes. Office, Retail, Wholesale and Manufacturing.

Most BOP policies come as a template that include a vast amount of “default” coverages.

Non-bop policies are sometimes written with particular coverage forms.

The point to be made is, shopping for insurance for your particular type of business can become tiresome, time consuming and troublesome.

Using the “search” feature of WhoWritesWhat.com may make your finding who writes what easier.

Specialty Insurance

Specialty Insurance is a loosely used term in the insurance insurance but it usually applies to Business Insurance.  For one example let us use Construction.

Many Contractors are familiar with the following types of insurance categories.  Bond/Surety, General liability, Commercial Auto, Workers Compensation, Builders Risk, Inland Marine and more.

But not all insurance carriers write all classes of construction.  As an example,  there are Managing General Agencies that may offer General liability for a home builder that builds single family custom homes. However, the “exclude” any tract sub-division work.

For the Contractor trying to find an insurance expert that can handle general liability for tract sub-division work, this can become time consuming.

At WhoWritesWhat.com we hope to make the finding the type of insurance you need a easy-breezy, quick and easy.

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Admitted vs. Non-Admitted Insurance

This subject is a sensitive and important one.  We suggest you research this further with you State Department of Insurance.

The information provided here, as in all areas regarding insurance, are provided in ‘general’ terms and caveat emptor should always be used. “Buyer Beware.”

In short, an Admitted carrier participates in a guarantee fund whereby a non-admitted carriers does not.

If an Admitted carrier goes bankrupt due to losses sustained there is a fund to help pay claims. The fund is built up from the premium dollars, in part that you and others pay into the fund within your State.

In contrast, a non-admitted carrier does not participate into a guarantee fund, nor does it “have to” need the solvency requirements of an Admitted carrier (it does not mean that they do not) and thus if the non-admitted carrier goes bankrupt there is no guarantee fund for you to look towards for claims satisfaction.

With this having been stated… What can you do?  When shopping for insurance there are many times when there ‘are no admitted’ insurance carriers that will accept your type of business.

The “only” option is non-admitted insurance carriers.  This is “common” an dit certainly legal.

How would you know when the carrier is non-admitted?  You will know because it is the law that you are to be notified by the agent or insurance carrier.  A signed disclosure form is required.

Captive Agent vs Independent Insurance Agent or Broker

In general, a captive agent is an employee-agent and works for a single insurance company. The captive agent “represents ‘the’ insurance company.

In contrast, an independent insurance agent or broker “represents you” the client.

They do so by having a written agreement with either a Managing General Agent or and Insurance Carrier.  As such they can be appointed with many Managing General Agents and Insurance Companies in order to find you the type of insurance you require.

Both have existed in the United States for several decades and serve the American pubic well.

Shopping for Insurance