Before an insurance risk can be placed in an Excess & Surplus (E&S) Lines policy it must be rejected for coverage by standard insurance companies. It is against Department of Insurance regulations to place a risk in an E&S “non-admitted” market if it qualifies for coverage in an “admitted” company.

Business and personal risks may be rejected for a variety of reasons. The typical types of risks written in E&S Lines include those that:

• Are high risk  (eg. explosive manufacturing, firearms makers, hazardous haulers)
• Do not fit standard market underwriting  (eg. bars & taverns with dance floors, vacant properties, taxi cabs)
• Require higher limits than offered by standard markets (eg. $10,000,000+ Liability Umbrellas, $5,000,000+ Property limits)
• Specialty coverage (eg. special events, concerts, hole-in-one contests, and unique situations)
• Have excessive or otherwise unacceptable loss history 

The E&S insurance markets originated when those who needed insurance coverage were unable to secure it from the standard “admitted” companies. E&S markets have the flexibility to design insurance policies with specific insurance coverages (if needed - more restrictive or offer extra coverage) and adapt quickly to changing market conditions so consumers and commercial entities can secure the unique insurance protection they need.

For a list of related E&S questions click:

• What is Excess & Surplus Lines Insurance?
• What are “admitted” and “non-admitted” insurance companies?
• Who sells Excess & Surplus Lines insurance?
• Why is there a disclosure on my Excess & Surplus Lines policy?