What is the difference between admitted and non-admitted carriers?
An admitted carrier is licensed and approved by the Georgia Department of Insurance. A carrier/" class="oc-glossary-link">non-admitted carrier, also called a surplus lines carrier, operates outside those state licensing requirements. The practical difference comes down to rate oversight and what backstop exists if the company fails.
What rules apply to admitted carriers in Georgia?
Admitted carriers file their rates and policy forms with the Georgia Department of Insurance before using them. The state reviews and approves those forms, which means policyholders receive predictable cancellation notice periods, appeal rights, and protection from the Georgia Insurers Insolvency Pool if the carrier becomes insolvent. Most everyday home and auto policies come from the admitted market.
What is a non-admitted carrier and when does it step in?
Non-admitted carriers are not licensed through Georgia’s standard approval process. They do not file rates with the state in the same way, so they have more flexibility to write unusual or high-risk coverage. The trade-off is that their policyholders are not backed by the state guaranty fund if the company fails. Non-admitted carriers place business in Georgia through licensed surplus lines brokers.
Why would anyone choose a non-admitted carrier?
Sometimes it is the only available option. Non-admitted carriers serve risks that admitted carriers decline, including coastal homes with wind exposure, older properties with outdated roofs or wiring, and small businesses in industries the standard market avoids.
For example, a homeowner near Brunswick who cannot find an admitted carrier willing to cover their property might be placed with a non-admitted carrier for a premium of $3,500, where the alternative is no coverage at all. The trade-off is fewer state protections in exchange for actually getting insured.
Is a non-admitted carrier less financially secure?
Not necessarily. Financial strength varies by company, not by admitted status. Some non-admitted carriers are large, well-capitalized insurers that simply choose not to seek state licensure in every market. The key difference is not solvency but the backstop that exists if the company fails: admitted carriers carry the guaranty fund backstop, non-admitted ones do not.
For example, a Savannah business owner with a claims history that admitted carriers flag might find a non-admitted carrier offers the only viable general liability policy, sometimes at a competitive rate, because surplus lines carriers price each risk individually rather than following filed state rate tables.
How does Olive Cover work with both types of carriers?
As an independent agency, Olive Cover (operated by Olive Insurance Services, LLC) works with both admitted and surplus lines carriers. When a risk does not fit the standard market, placing coverage with a non-admitted carrier is often the right path. Every placement comes with a clear explanation of which type of carrier is being offered and why. To review your options with a licensed advisor, request a free coverage review. You can also browse the carriers available through Olive Cover to see the range of admitted and non-admitted options.