Frequently Ask Questions

An Admitted carrier is “backed” by the California Insurance Guarantee Association (CIGA) Fund. The Fund would cover the claim up to you policy limit or $500,000 in liability; whichever amount is lower, in the case that the carrier becomes insolvent. 

A ‘Non-Admitted” carrier has been approved by the Department of Insurance to operate on a “Non-Admitted” basis but is not “backed” by the State Guaranty Fund. Financial stability of the carrier becomes very important when they are transacting business on a “Non-Admitted” basis. This can be investigated by using companies such as A.M. Best who are in business for the sole purpose of researching insurance carriers and compiling statistical information.

One point that should be mentioned is that financial strength is not always related to the carriers Admitted or Non-Admitted status. Furthermore, there are more regulatory restrictions placed on the Admitted carrier. Some of the largest insurance companies in the world choose to transact business in California, and in all states, on a Non-Admitted basis.

This is an endorsement which names others as an insured to your policy. It is a requirement by almost all carriers that if you hire a Sub-Contractor – you must have your Company named as “Additional Insured” on their policy. Failure to comply with this requirement can get you Cancelled or could affect any claim should one arise. A few more examples of additional insured requests are:


*If you are a contractor and plan to do work for a homeowner, they may ask to be named as additional insured to your insurance policy. This is the homeowners way of protecting themselves from any liability arisng out of your work on their property.

*If you rent an office for your business, the property owner may require that you name him/her to your insurance policy as additional insured. This is the property owners way of protecting him/herself against claims that may arise from your business operations in the rented office space.

*If you plan to rent a private or public facility to hold an event, the private owner or public entity, may require additional insured status before the facility can be used.

In most cases (but not all), there is an additional premium charged by the insurance carrier for this endorsement. Your insurance broker/agent does not have control over the amount charged. Some insurance carriers offer “Blanket” additional insured. This option could prove to be less costly in the long run, if you require many additional insured endorsement throughout the policy year.

We try to obtain as much information as we can from you during your first conversation. with us. However, the insurance company underwriter may have additional questions.

With this information, we will be able to determine what carrier(s) will best fit your needs and provide you with the best price. In some cases; it will take a few phone calls and completing several applications to get you the best quote. The questions vary, depending on the type of insurance you need. For instance, we will not ask you to provide information about your companies vehicles, if you need a quote for Workers Compensation.

Here are some examples of questions we may ask:

  1. Annual gross receipts (all coverage types)
  2. Annual Employee Payroll (commercial liability, workers’ compensation, E&O)
  3. Description of business operations (all coverage types)
  4. Sub-contractor costs (commercial liability, E&O)
  5. Vehicle make, year, model (commercial auto, truckers)
  6. Miles driven annually (commercial auto, truckers)
  7. Federal Employee I.D. Number (F.E.I.N.) (workers’ compensation, liability)
  8. Social Security number (for bonds & occasionally commercial auto)
  9. Square footage of building (commercial property, BOP)
  10. Year of construction (commercial property, BOP)
  11. Building improvement information (commercial property, BOP)
  12. Loss history (all coverage types)
  13. Past, current and projected gross receipts (commercial liability, professional liability)
  • General Aggregate – This is the limit the insurance company will pay on your behalf for any number of claims during the policy period. The most they will pay on one loss cannot exceed the Occurrence Limit.
  • Products and Completed Operations – The limit of this coverage is the amount the Insurance Company is obligated to pay on your behalf based on policy coverage. This coverage extends protection to you during manufacturing or contracting operations. An example would be if you installed something incorrectly and caused damage or if you sold a defective product.
  • Personal and Advertising Injury – This coverage affords protection against claims such libel, slander, defamation of character or invasion of privacy (personal Injury) and claims alleging written or publicized offenses of the above examples.
  • Each Occurrence – The total amount shown as a limit of this coverage establishes how much the Insurance Company is obligated to pay on your behalf for each incident which leads to a claim made to the Company under the terms of your policy.
  • Fire Damage Liability – The maximum amount the company will pay on your behalf, if you negligently cause a fire which damages a building you lease or rent for your business.
  • Medical Expense – The limit the company will pay for medical bills incurred by a person injured on your premises, regardless of whether or not your organization was at fault for causing the injury. If your business is deemed to be negligent, the responsibility falls within the limit of bodily injury portion of coverage.
  • Bodily Injury & Property Damage – This section of a policy defines certain covered losses and excludes certain losses. An example of a covered loss under Bodily Injury could be “trip and fall” accidents. Property damage claims relate to damage to physical objects (an example is a building).

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