Question
I'm working on building an insurance company that will be selling a specialty insurance product. We are wondering what the benefits and risks are of selling the product as a non-admitted, rather than admitted product. The focus of the insurance coverage is mainly for property (think expensive sports gear in the $10's of thousands), with some personal injury and third party liability included as well.
Answer
Well if you went the admitted route you would likely have to consider 50 varieties of your offering; one for each state. If you went the non-admitted route you could avoid most of this BUT sometimes the reputation of non-admitted is not as good since they do not fall under state guidelines. On the other hand, your company will fail if it does not take care of customers and pay claims so you should be able to avoid that problem.
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