Insurance carrier
Also called Insurer, insurance company or carrier
Definition
An insurance carrier is the company that issues your policy, takes on the financial risk it describes and pays covered claims.
An insurance carrier is the company that stands behind your policy. It agrees to pay covered losses in exchange for your premium, and it’s the one named as the insurer on your declarations page.
How it works
Buying insurance often involves more than one company, but only one carries the risk. The carrier writes the policy terms, decides through underwriting whether to offer coverage and on what terms, holds the money to pay claims, and handles or oversees those claims.
Agents and brokers sell and service policies, but they usually don’t pay claims themselves. Some firms, such as managing general agents, handle sales, underwriting or claims on a carrier’s behalf. Whoever you deal with day to day, the carrier is the party with the contractual promise to you.
In the U.S., insurance is regulated mainly by the states. Licensing insurers and checking that they stay solvent, meaning able to pay what they owe, are core jobs of state insurance regulators. If you have a problem with an insurer, you can file a complaint with your state’s insurance department. The National Association of Insurance Commissioners (NAIC) keeps a directory of them.
Where you’ll see it
- On the declarations page, which names the carrier for each part of your coverage.
- On a certificate of insurance, which lists the insurer behind each policy shown.
- On a loss run, which comes from the carrier that held your policy.
- On premium bills, audit letters and claim correspondence.