Export – Placing a Risk With a Nonadmitted Insurer
Written by Justin Goodman, CIC, CISC, CLCS, CEO and Co-Founder, Total CSR
Published: September 14, 2026 · Last reviewed: September 14, 2026
In plain language: Export means an agent moves a client's insurance application out of the regular insurance market and into the surplus lines market because standard insurers will not write the risk. It happens when a business is too unusual, too large, or too high-risk for typical carriers.
Technical definition: Export is the act of placing coverage with a nonadmitted surplus lines insurer after a licensed surplus lines broker documents that admitted carriers declined or would not offer adequate terms. It requires a diligent search, state-specific filings, and surplus lines tax payment under each state's insurance code.
Export at a Glance
| Attribute | Detail |
|---|---|
| Also known as | Surplus lines export, nonadmitted placement, diligent search placement |
| Category | Surplus lines and market access |
| Lines of business | Commercial property, commercial general liability, excess/umbrella, professional liability, environmental |
| Industries most affected | Construction, habitational, hospitality, manufacturing, environmental services |
| Related forms or endorsements | State-specific surplus lines affidavits and disclosure forms (vary by state; no ISO form) |
| Who bears the risk | Insured, surplus lines broker, and nonadmitted insurer share compliance and coverage risk |
| Common solution | Diligent search documentation and placement with an eligible nonadmitted carrier |
| Also interacts with | Admitted carrier declinations, export lists, surplus lines tax filings, state guaranty fund exclusions |
Key Takeaways
- Export is the process of moving a risk from the admitted, standard insurance market into the surplus lines market when no licensed carrier will accept it.
- Agencies rely on export placements to cover hard-to-place risks like habitational properties with prior losses, specialty contractors, or coastal property, keeping clients insured when standard markets decline.
- The most common misunderstanding is assuming a nonadmitted policy carries the same state guaranty fund protection as an admitted policy; it typically does not.
- A quick win is confirming whether the target class of business sits on the state's export list, since export-listed risks often skip the formal diligent search requirement.
What Is Export in Insurance?
Export is the mechanism that lets a risk leave the admitted insurance market and land with a nonadmitted, or surplus lines, insurer. State insurance codes generally require admitted carriers to get first opportunity at any risk before it can be exported. This protects consumers by ensuring standard markets, which carry state guaranty fund backing and rate regulation, are exhausted before a business turns to less-regulated capacity.
The doctrine behind export traces back to state efforts to balance consumer protection against market flexibility. Admitted insurers file rates and forms with state regulators and pay into guaranty funds that cover policyholders if the insurer becomes insolvent. Surplus lines insurers do not file rates and are not backed by most guaranty funds, so states require proof that admitted markets were tried first, unless the class of business appears on an export list.
Consider a restaurant with a history of assault and battery claims tied to its bar operations. Three admitted carriers decline to quote because of the loss history and the liquor liability exposure. The surplus lines broker documents each declination, confirms the class is not on the state's export list, and places the account with a nonadmitted insurer that specializes in higher-hazard hospitality risks. That placement is the export.
How Does Export Work?
- The decline. An admitted carrier reviews the submission and either declines to quote or offers terms the retail agent considers inadequate for the exposure.
- The diligent search. The surplus lines broker documents attempts with a required number of admitted carriers, unless the class of business already sits on the state's export list.
- The eligibility check. The broker confirms the target nonadmitted insurer is on the state's approved list of eligible surplus lines insurers.
- The placement. The broker binds coverage with the nonadmitted carrier and issues state-mandated disclosures noting the policy is not protected by the state guaranty fund.
- The filing. The broker files the surplus lines affidavit and remits surplus lines premium tax to the home state within the required filing window.
Real Claim Examples Involving Export
Coastal habitational property after hurricane losses
A 40-unit apartment complex in a coastal wind zone lost its admitted carrier after two hurricane-related roof claims in three years. Four admitted insurers declined the renewal submission, citing coastal aggregation limits. The agent's surplus lines broker documented the declinations, confirmed habitational coastal property was not export-listed in that state, and placed the property with a nonadmitted carrier. When a subsequent wind claim occurred, the policy paid according to its nonadmitted terms, but the client had to be reminded in advance that no state guaranty fund would step in had the insurer become insolvent.
Specialty demolition contractor
A demolition contractor working with legacy asbestos abatement could not find an admitted general liability carrier willing to write the class. The broker exported the risk to a surplus lines market with specific environmental and contractor experience. A third-party bodily injury claim arose from an abatement job, and the nonadmitted policy responded because the export placement matched the actual scope of operations disclosed on the application. Accurate operations disclosure at export time proved decisive in the claim being accepted without a coverage dispute.
Nightclub with liquor liability history
A nightclub with two prior liquor liability suits triggered declinations from every admitted market the retail agent approached. The surplus lines broker exported the account, and the nonadmitted insurer wrote it with a sublimit on liquor liability. A new assault claim exceeded that sublimit, and the client discovered the exported policy's liquor liability cap was lower than the general aggregate, creating a coverage gap the agency had disclosed in writing at binding, which limited the agency's E&O exposure.
Export vs. Nonadmitted Carrier: What Is the Difference?
Export describes the process of moving a risk out of the standard market; a nonadmitted carrier is the type of insurer that receives that exported risk. Agencies sometimes use the terms interchangeably, but export is an action performed by a broker, while nonadmitted status is a regulatory classification of the insurer itself.
| Comparison area | Export | Nonadmitted Carrier |
|---|---|---|
| Primary use case | Describes the placement process for hard-to-place risks | Describes the insurer's regulatory status in a given state |
| Coverage / concept type | Procedural requirement (diligent search, filings, tax) | Insurer classification not licensed by the state |
| Typical exclusions | N/A, a process, not a coverage form | Coverage forms vary widely and are not state-filed |
| Who is most affected by errors | Retail agent and surplus lines broker facing compliance penalties | Insured, who loses guaranty fund protection if insurer fails |
| Common mistakes | Skipping diligent search documentation when required | Assuming any nonadmitted insurer is automatically export-eligible |
What Are the Most Common Mistakes With Export?
- Assuming a class of business is export-listed without checking the current state list, which can result in a missing or incomplete diligent search file.
- Failing to disclose to the client that the surplus lines policy is not covered by the state guaranty fund, which creates an E&O exposure if the insurer becomes insolvent.
- Placing a risk with a nonadmitted insurer that is not on the state's eligible surplus lines insurer list, which can void the placement's compliance status.
- Missing the surplus lines tax filing deadline, which can trigger fines against the broker's surplus lines license.
- Exporting a risk based on outdated declination letters instead of current-cycle quotes, weakening the diligent search documentation if the file is audited.
How to Explain Export to a Client
Explaining export to a personal lines client
"Your home didn't qualify with our regular insurance companies because of its location and prior claims, so we had to go outside the standard market to find you coverage. This is called an export, and it just means we found a specialty company willing to insure a property like yours. The trade-off is that this policy isn't backed by the same state safety net as a standard policy."
Explaining export to a small business owner
"A few insurance companies looked at your business and turned it down because of the type of work you do or your claims history. We documented that search and moved your account to a surplus lines market, which specializes in exactly this kind of risk. It's a completely legal and common process, but the policy terms and cancellation rules can look a little different than what you're used to."
Explaining export to a CFO or risk manager
"Your risk profile fell outside admitted market appetite this renewal cycle, so our surplus lines broker ran a diligent search across the standard market before exporting the placement. The nonadmitted carrier we selected is on the state's eligible insurer list and carries strong financial ratings, but you should know the policy isn't backed by the state guaranty fund. We'll flag any form or sublimit differences from your prior admitted policy so there are no surprises at claim time."
Frequently Asked Questions About Export
What does it mean when an agent says they exported my policy?
Exporting a policy means the agent's surplus lines broker moved the application from standard, state-regulated insurers to a specialty nonadmitted insurer. This usually happens because admitted carriers declined the risk or offered terms that did not fit the exposure. The client still gets valid coverage, just from a different type of insurer with different regulatory backing.
Is an exported policy less safe than a standard policy?
An exported policy is not automatically less safe, but it typically lacks state guaranty fund protection if the insurer becomes insolvent. Agencies should verify the nonadmitted insurer's financial strength rating before placing coverage. A financially strong surplus lines carrier can be just as reliable as an admitted one for claims-paying purposes.
Does every risk require a diligent search before it can be exported?
Not every risk requires a diligent search. Many states maintain an export list of classes, like certain environmental or excess liability risks, that can bypass the diligent search requirement because the state has already determined admitted capacity is generally insufficient. Brokers still must confirm the current version of that list, since it changes over time.
Who is responsible for filing surplus lines taxes on an exported policy?
The surplus lines broker who places the export is generally responsible for filing the surplus lines tax with the home state and paying it within the required deadline. This obligation exists independent of who collects premium from the client. Missing this filing can jeopardize the broker's surplus lines license, not just the individual transaction.
Can a risk be exported back to the admitted market later?
A risk can move back to the admitted market at any future renewal if an admitted carrier becomes willing to write it, often after loss history improves or market conditions soften. There is no formal "import" process; the retail agent simply solicits new admitted quotes at renewal. Total CSR sees agencies miss this opportunity repeatedly during CSR training assessments, letting exported accounts sit with surplus lines carriers for years without rechecking admitted appetite.
Related Insurance Terms
- Surplus lines insurance: Coverage written by nonadmitted insurers for risks that admitted carriers will not accept; export is the process that leads to a surplus lines placement.
- Admitted carrier: An insurer licensed and regulated by a specific state; export only occurs after admitted carriers in that class decline the risk.
- Diligent search: The documented process of approaching admitted carriers before exporting a risk, required in most states unless the class is export-listed.
- Export list: A state-published list of insurance classes presumed to lack sufficient admitted market capacity, allowing export without a formal diligent search.
- Excess and surplus lines broker: A specially licensed broker authorized to place exported risks with nonadmitted insurers and handle related state filings.
- State guaranty fund: A state-backed mechanism that pays claims if an admitted insurer becomes insolvent; most exported nonadmitted policies are not covered by it.
Sources and References
- National Association of Insurance Commissioners. Surplus Lines Overview.
- National Association of Insurance Commissioners. Nonadmitted and Reinsurance Reform Act (NRRA) Overview.
About the Author
Justin Goodman, CIC, CCIP, CISC, CLCS, CRIS, PCIA, QCLS, MFHR CEO and Co-Founder, Total CSR, Inc.
Justin Goodman is a third-generation insurance broker with over two decades in agency operations. He has trained more than 100,000 CSRs, account managers, and producers in commercial and personal lines coverage, from workers' compensation to construction risk. He was named 2024 Insurance Journal Agent of the Year and one of the nation's top five construction insurance experts by Risk & Insurance. He is the author of Retain, which applies cognitive science research on memory and knowledge transfer to insurance training, and speaks nationally on how agencies build durable technical expertise in their teams.