Dear JSA,
I think I know what E&S is, but I’m not 100% sure. What IS Excess & Surplus Lines Insurance, anyway?
Sincerely,
Anita Primer
Dear Anita,
Thanks for asking this question. Excess & Surplus Lines (E&S) is a specialty market that fills an important gap in the availability of coverage. The carriers in this market provide coverage for difficult or inherently dangerous risks that are unisurable through the standard market. Many agents may have a little experience with a small sampling of E&S, but it encompasses a very broad range of ever-changing risks.
Some basic reasons insureds need coverage through the E&S market include:
- a new business entity
- an inexperienced business entity
- poor loss history
- unique coverage requirements
- high capacity risks
Because E&S carriers are not regulated in the same way as standard carriers, they have greater flesibility to tailor coverage, charge the appropriate rate regardless of any State filings, and adjust coverage to accommodate the every-changing marketplace. This allows the E&S carriers to accept risks that the standard insurers decline.
It may not be something you need very often but we truly love living in the world of E&S; so if you have an E&S question, don’t hesitate to give us a call anytime>> 800-342-5572.
For a more in-depth answer to this question with some real-world examples, watch this short video by JSA President & CEO, Danielle Wade:
