Surplus lines insurance is specialized coverage written by unlicensed, nonadmitted insurance companies to cover specific extraordinary items and uncommon or high risks that are generally not covered by traditional insurance companies under standard policies. It can also be used to insure new risks for which there is limited loss history to guide rating criteria or risks that require substantially high limits of coverage that are not offered by traditional insurers, such as an art collection stored in a museum.
Surplus lines insurance is most commonly purchased by businesses but can also be used by individuals with unique insurance needs.
Surplus Insurance
Edward & Associates 330 Canal Street, Leechburg, PA 15656 Office: 724-236-0326 Info@KeyPaInsurance.com
How Does Surplus Lines Insurance Work?
Surplus lines insurance, also called excess and surplus lines (E&S) insurance, can be utilized for the following types of risks:
Those denied coverage by traditional insurance companies
Those with little to no loss history to support rates or coverage limits
Those related to special and/or high-value items
Those with high chances of loss
Who Needs Surplus Lines Insurance?
The target market for surplus lines insurance includes any business, institution, or individual with very specific or unusual insurance needs that can’t be satisfied with or accepted by traditional or admitted insurance companies.
This can also include new businesses that are younger than three years old, especially those offering new categories of goods or services, or an individual or business that is considered a high risk, such as:
Those with too many past claims on their record
Those located in an area prone to catastrophic weather events like wildfires or hurricanes
Those required to obtain nonstandard auto insurance