USING A NON-ADMITTED INSURANCE COMPANY IN CALIFORNIA
In the past certain agent, brokers and companies, included CLA insurance,used some non-admitted insurance carrier or company for Laundromat owners who did not keep their Laundromats fully attended. In response to questions from clients about these policies the following has been prepared. A reason you might use a non-admitted insurance company in California is if the coverage needed is not available from an admitted company. There are many admitted companies selling Laundromat insurance in the State of California. Zenith and Maxum Indemnity Insurance are
NON-ADMITTED (OR SURPLUS LINES) INSURANCE COMPANIES
The use of a non-admitted carrier usually comes about when an agent or broker,finds their admitted carrier has underwriting requirements prohibiting the sale to certain risks or that the rates are too expensive to be competitive. One such problem is the attended versus unattended Laundromat in California.
The traditional definition of an attended Laundromat is when your attendant leaves the entrance and exit doors are locked. When an attendant is not present, the store is closed. Laundromat owners have sometimes skated on the edge of risk when they created their own definitions by including "nearly always" and "most of the time" or "she only goes next door for lunch" as adequate for "fully attended."
The risk is when you have a loss and the application you signed requires your Laundromat to be fully attended. You expose yourself to legal action from your insurance carrier and possibly your Landlord. The Coin Laundry Association does excellent things for our business, but it is important to remember that they are only operating as sales people when they sell Laundromat insurance. You need to check your risks before you buy from any sales person and make your own decision on what is best for you.
not California admitted insurance companies. (Gridiron/Maxum is a broker not an insurance company.) California leases may not allow the use of a non-admitted insurance company to fulfill their terms. It would be prudent for you to read your lease provisions to ensure that you are not violating any of the terms of your lease by looking in the insurance requirements section. If you decide to use Zenith, Maxum or any another non-admitted insurance company, purchased from any broker or agent, you should probably notify your Landlord and receive written permission for this choice. Your Landlord may require you to produce records showing you have been declined by three admitted insurance companies before they will allow any lease modification.
NON-ADMITTED INSURANCE COMPANIES
STOP PAYING TOO MUCH FOR YOUR LAUNDROMAT & COIN LAUNDRY INSURANCE