Holders of comprehensive liability insurance policies from Hudson Insurance Group whose policies are due to renew have instead been receiving non-renewal notices. The situation, however, isn’t as scary as it seems.
Jayda Zemansky-Martini, President of Sadler & Company, which represents Hudson along with several other carriers, points out that these are standardized letters “sent out when insurance carriers make changes to the companies they use to cover you.” In this case, Hudson is switching from an admitted carrier to a non-admitted carrier.
She sends along assurances that “there will be no change in your coverage and you will be receiving a follow up notice with your new renewal policy quotes.”
Jayda also points out that this change does not affect Fair Plan or Red Shield homeowners policies.
“In California,” she explains, “admitted carriers are licensed, heavily regulated by the California Department of Insurance (CDI), and backed by the state guaranty fund. Non-admitted carriers (surplus lines) are not state-licensed but are regulated, providing crucial coverage for high-risk, unique, or hard-to-place risks (e.g., wildfire zones) without adhering to rate filings.”
While admitted carriers offer more consumer protection, non-admitted carriers are frequently necessary in California due to market withdrawals. The financial strength (e.g., A.M. Best rating) is critical for both types of carriers, as a strong non-admitted carrier may be safer than a weak admitted one. Non-admitted insurers in California must be on the List of Approved Surplus Line Insurers (LASLI), ensuring they meet minimum capital requirements.