RLI business insurance

Overview

RLI is a specialty insurer from Peoria, Illinois. It writes the risks standard carriers pass on, from excess liability and trucking to earthquake-exposed buildings and contractors' bonds. Its NAIC group was ranked No. 50 among U.S. business insurers by 2025 commercial lines direct premiums written, with $1.83 billion, based on NAIC market share data, about 0.38% of the national commercial market. It is not among the 10 largest writers of any single commercial line nationally. Other liability is by far its biggest line at $934.6 million, followed by allied lines ($237.4 million), commercial auto ($162.7 million) and surety ($158.8 million).

The group has three insurance companies, all domiciled in Illinois:

• RLI Insurance Company: the main admitted carrier, licensed in all 50 states, D.C., Puerto Rico, the U.S. Virgin Islands and Guam.
• Mt. Hawley Insurance Company: the excess and surplus lines carrier, writing on a non-admitted basis in the same territories.
• Contractors Bonding and Insurance Company (CBIC): an admitted carrier in all states and D.C., bought in 2011, which writes bonds and contractor packages.

In 2025, specialty admitted business produced about $1.2 billion of gross premiums written (60%), E&S about $783 million (39%) and assumed reinsurance $23 million (1%). RLI Corp. trades on the New York Stock Exchange. Craig Kliethermes is president and CEO. The company had 1,193 employees at the end of 2025, and through an employee stock ownership plan it calls them "associate-owners."

History

RLI was founded in 1965 by Gerald D. Stephens as a contact lens insurance agency. It later moved into commercial property and liability and built out the niche portfolio it has today. Mt. Hawley gave it a home for surplus lines business. On April 28, 2011, it closed the purchase of CBIC, a Seattle-based surety and contractor insurer, for about $136 million.

Other milestones are financial. RLI has paid special dividends every year since 2010 and has raised its regular dividend for 50 consecutive years. In 2022 it sold its stake in sunglasses maker Maui Jim, booking $571 million of realized gains. Its stock split 2-for-1 on January 15, 2025.

RLI also owns 23% of Prime Holdings Insurance Services, an E&S and admitted insurer group. It reinsured part of Prime's book through a quota share treaty but reduced that participation and, from 2026, no longer takes part.

The product line keeps moving. On July 7, 2026, RLI launched an Entertainment & Amusement unit that writes non-admitted property and casualty in all 50 states for amusement parks, family entertainment centers, fairs, festivals, mobile amusements and concessionaires. RLI says it has a history of exiting markets when conditions turn too adverse.

Business insurance products

In 2025, casualty made up 59% of net premiums earned, property 31% and surety 9%.

Casualty. The largest pieces are:

• commercial excess and personal umbrella;
• commercial transportation (auto liability and physical damage for trucking fleets, public transportation entities and other specialty auto risks, plus cargo);
• general liability for manufacturers, contractors, apartments and mercantile risks, plus environmental liability for storage tanks, contractors and remediation firms;
• professional liability for design and technical firms;
• executive products, where public-company D&O centers on excess Side A and excess full-coverage layers.

For small accounts, brokers can quote and bind excess limits of $1 million to $5 million for about 400 classes through Easy Excess, an online program on Gridiron. It is written by Mt. Hawley, with minimum premiums of $550 to $950 per million depending on state.

Property. Commercial property is mostly E&S: fire, earthquake, wind and difference in conditions for office buildings, apartments, condominiums and some industrial and mercantile risks. RLI offers up to $25 million of in-house capacity for primary and excess layers, and earthquake and flood up to $15 million per risk in California and $25 million elsewhere. Marine covers cargo, hull, protection and indemnity, marine liability, builders' risk and contractors' equipment. RLI also writes homeowners and dwelling fire in Hawaii.

Contractors. Contrac Pac is an admitted program for general and artisan contractors. QuickWrite handles general contractors with gross receipts up to $4 million and artisans up to $3 million, and full package policies take larger firms. Some policies are written by CBIC. It is not available in New York or Colorado.

Surety. RLI writes small transactional bonds (license and permit, notary, court), commercial bonds for mid-sized and large companies, and contract surety bonds for small and medium contractors. Graduated contract programs run from FirstStep (up to $500,000, minimal underwriting) through Next Step ($500,000 to $1.5 million) to standard accounts, with capacity of $75 million or more for well-established contractors. Small and emerging contractors can get bonds through the SBA guarantee program.

Home-based businesses. RLI insures more than 140 types of home business, such as crafters, photographers and computer repair, against liability and loss of business property and inventory.

Who it insures

RLI's appetite is a collection of niches rather than a size band. The trucking unit targets for-hire and private fleets of 11 or more power units, including flatbed, refrigerated, tanker and some hazmat haulers. The design professionals unit writes architects, engineers, surveyors and landscape architects, and can package property, general liability, auto, excess and workers' compensation around the E&O policy. Wholesale property takes larger, hard-to-place buildings. At the other end, home business policies cover one-person operations.

Geography matters more than the 50-state license suggests. In 2025, 56% of direct premiums earned came from four states: Florida (18%), California (18%), Texas (11%) and New York (9%). That reflects its catastrophe-exposed property and excess casualty books.

How to buy

Nearly everything goes through an intermediary. Property, general liability, commercial surety, executive products, excess, marine and transportation come mainly through wholesale and retail brokers. Contractor packages, professional services, small commercial, transportation and bonds also go through appointed independent agents. Ten producer firms supplied 49% of 2025 gross premiums written. Each product has its own appointment rules, and the wholesale property team was not taking new broker appointments as of 2026. Your broker may need a wholesaler to reach RLI.

Agents cannot bind most risks without approval from an RLI underwriter or its automated systems. Home business insurance is the main exception you can buy yourself: the quote runs online through Simply Business. If you run a trucking fleet or a design firm, RLI lists sales contacts by product on its site who can point you to an appointed agent.

Claims

RLI handles its own claims. Email [email protected], which the company prefers, use the online claim form, or call 800-444-0406 (fax 866-692-6796). Transportation losses have an after-hours line, 800-609-8041, and an accident reporting kit for drivers. Workers' compensation claims go to 877-863-5095 (fax 877-863-4352). RLI provides a virtual claims kit with state posting notices and claim forms, including California medical provider network information.

Have the policy or bond number, a description of the damage or injury, and the location ready. Trucking insureds get a dedicated loss control expert, a day of onsite driver training and discounts on telematics from Samsara, Lytx, Motive, Netradyne and IntelliShift. See telematics and dashcams in commercial auto insurance.

Financial strength and ratings

On February 20, 2026, AM Best upgraded RLI Insurance Company, Mt. Hawley and CBIC to A++ (Superior), its highest rating, from A+. It raised their long-term issuer credit ratings to "aa+" and RLI Corp.'s to "a+", with a stable outlook. AM Best had moved the outlook to positive in January 2025. S&P rates RLI Insurance Company and Mt. Hawley A (Strong), and Moody's rates them A2; both were affirmed in 2025. See AM Best ratings explained for business buyers.

The underwriting record is the main draw. RLI posted its 30th consecutive year of underwriting profit in 2025, averaging an 87.9 combined ratio over those years. The 2025 combined ratio was 83.6 on $264.2 million of underwriting income, helped by $87.4 million of favorable prior-year reserve development. Storm losses were $26.5 million, down from $93.6 million in 2024, when Hurricanes Beryl, Helene and Milton hit. Gross premiums written grew only 1% in 2025. In the second quarter of 2026 they rose 3%, led by casualty, at an 85.6 combined ratio.

Mt. Hawley policies are surplus lines and generally fall outside state guaranty fund protection.

Strengths and weaknesses

RLI is a disciplined niche underwriter with a long record of profit and now AM Best's top rating. In practice that means it will walk away from business it thinks is underpriced. Growth has been slow, and capacity per risk is modest next to the global carriers.

• Strengths: A++ (Superior) from AM Best since February 2026. Thirty straight years of underwriting profit through 2025. Deep niche programs in trucking, design professionals, contractor bonds and E&S property, with in-house claims and loss control. Admitted and E&S paper, so one market can handle both sides of an account.
• Weaknesses: You cannot buy commercial coverage direct except home business policies. Many products require a specific appointment, and some teams are closed to new brokers. Property capacity tops out at $25 million in-house. Business is concentrated in Florida, California, Texas and New York, and RLI pulls back from lines it considers mispriced.

How to contact RLI