How to Check if a Company Is Licensed to Sell Insurance
Written by Jazmin A., Compliance Auditor
The two licenses to look for, the free tools that verify them, and the questions to ask any shipping protection provider.
Back to the resource centerKey takeaways
- An insurer's "certificate of authority" and a seller's "producer license" are different. Legitimate coverage normally involves both.
- Your state insurance department's lookup is the best free tool for consumers.
- "Non-admitted" or "surplus lines" is a legal structure, not a red flag by itself, but it changes guaranty fund protection.
- An AM Best rating measures financial strength. It is not a license.
- If a shipping protection provider can't name its insurer and license, ask why.
What's the difference between a producer license and a certificate of authority?
State law licenses insurance at two levels. California's Insurance Code is a clear example.
Insurer: certificate of authority
"A person shall not transact any class of insurance business in this state without first being admitted for that class." Admission "is secured by procuring a certificate of authority from the commissioner."
Who has it: the insurance company that pays claims.
Cal. Ins. Code § 700(a)
Seller: producer license
A person "shall not solicit, negotiate, or effect contracts of insurance" unless the person "holds a valid license from the commissioner." And "The issuance of a certificate of authority to an insurer does not exempt an insurer from complying with this article."
Who has it: agents, brokers and agencies (business entities) that sell insurance.
Cal. Ins. Code § 1631
The NAIC's national producer number system covers both people and businesses: "NPNs are assigned to both individuals and business entities." So a company that sells shipping coverage can hold an agency license in its own name.
What does "admitted" vs. "non-admitted" mean?
| Admitted insurer | Non-admitted (surplus lines) insurer | |
|---|---|---|
| What it is | Holds a certificate of authority in your state | "non-admitted specialized insurers covering risks not available within the admitted market" (NAIC) |
| How it's regulated | By your state insurance department | "it is the surplus lines transaction that is regulated," through licensed surplus lines brokers; U.S. surplus lines insurers are "overseen by their domiciliary state" |
| Guaranty fund | Generally available for covered claims, within state limits | "not available to the surplus lines market" |
Some providers disclose this directly. For example, Shipsurance states, as of October 2026, "This insurance policy is issued by a NONADMITTED Insurance company." That kind of plain disclosure is what you want to see. It tells you how the coverage is structured.
Which tools can I use to check an insurance license?
| Tool | What it checks | Notes |
|---|---|---|
| NAIC Consumer Insurance Search (CIS) | Insurance companies | Company reports include complaint data. The NAIC says: "We encourage you to also check your state's insurance department website to confirm the Company or HMO is licensed." |
| California Department of Insurance license status | Agents, brokers and business entities | Direct search: cdicloud.insurance.ca.gov |
| Texas Department of Insurance agent lookup | Agents and adjusters | Companies: TDI company lookup |
| New York DFS Producer/Licensee Search | Producers | Companies: DFS Insurance Company Search |
| Utah Insurance Department licensee search | Licensees | Linked from Utah's fake shipping insurance alert |
| NIPR NPN lookup | National producer numbers | Built mainly for the industry. Full license reports are limited to those with a "permissible purpose." |
| AM Best rating search | Insurer financial strength ratings | A private rating agency, not a regulator. A rating is not a license. |
For other states, start at your insurance department's website. Our 50-state directory links to each one.
How do I check a license step by step?
- Find the exact legal names. Read the protection terms, the footer and the claim pages. Write down every company named: the store, the app or provider, any agency, and any insurer.
- Find any license numbers. Many licensed sellers publish them. For example, Cover Genius publishes state producer license numbers such as CA 6000406, TX 2421319 and NY 1541184, as of October 2026.
- Search the seller in your state's producer lookup. Search by name or license number. Check that the license is active and covers the right line of insurance.
- Search the insurer. Use NAIC CIS and your state's company search. If the insurer is non-admitted, the terms should say so.
- Compare names carefully. A license for "X Insurance Services, LLC" is not a license for "X, Inc." Look for the entity that actually sells the coverage.
- Call the department if unsure. Connecticut's alert, for example, invites consumers to verify a license at insurance@ct.gov or "800-203-3447 or 860-297-3900."
What does a license number look like? A worked example
InsureShip
InsureShip is "Licensed by the California Department of Insurance, license #0G55434." To check a number like this yourself, open the CDI license status page, search for the license number, and check that the name and status shown match the company you are dealing with.
Other providers publish their numbers the same way. Shipsurance, for example, states it is "Licensed by the CDI Number 0E39065," as of October 2026. A number you can't find in the state's own tool is a reason to ask questions.
What should I ask a shipping protection provider?
Whether a shipping protection product is insurance is decided by state law and regulators, based on what the product does. The Utah Insurance Department put it this way: "Legitimate shipping coverage providers will be licensed as insurance companies or insurance agents." Before you rely on coverage, or before you add it to your store, ask:
- Is this an insurance product? If not, what is it, and who pays claims?
- What is the name of the insurer, and is it admitted in my state or a surplus lines insurer?
- Which company holds the producer license, and what is the license number in my state?
- Am I (or my customer) the insured, a loss payee, or neither?
- Who decides claims, and is there an appeal process?
- Where can I read the full terms or policy wording?
Frequently Asked Questions
How do I check if an insurance agent or company is licensed?
Use your state insurance department's online lookup for agents, agencies and companies. For insurance companies, you can also use the NAIC Consumer Insurance Search. If you can't find a match, call the department.
Is a non-admitted insurer legitimate?
Surplus lines (non-admitted) insurance is a legal, regulated market. The transaction is regulated through licensed surplus lines brokers. The main difference for you is that state guaranty funds generally don't cover surplus lines claims.
Does an AM Best rating mean a company is licensed?
No. AM Best is a private rating agency that rates insurers' financial strength. Licensing is done by state insurance departments.
Can I use NIPR to look up a license?
NIPR's NPN lookup can help, but its tools are built mainly for the industry and full producer reports require a "permissible purpose." For most consumers, the state insurance department's lookup is easier.
What if a shipping protection provider says it isn't insurance?
Some providers say in their terms that their product is not insurance. Read what the product promises and who pays claims. Whether it is legally insurance is for state regulators to decide.
Check our license, then talk to us
InsureShip is licensed by the California Department of Insurance, license #0G55434, and licensed nationwide. Established in 2009. Underwritten by Navigators, a Hartford company, rated A+ by AM Best (Navigators Insurance Company, as of 2024). We integrate with Shopify, WooCommerce and other platforms, plus a custom API.
Talk to InsureShipSources
Last checked October 8, 2026. General information, not legal advice. Cal. Ins. Code § 700 · Cal. Ins. Code § 1631 · NIPR: Find an NPN · NIPR: Verify existing licenses · NAIC: Surplus lines · NAIC CIS · AM Best ratings guide · Utah Insurance Department alert · Connecticut Insurance Department alert · Company pages as of October 2026: Cover Genius US licenses · Shipsurance about · Shipsurance questions · The Hartford: Navigators fact sheet (Apr 2025)