Specialized Risk Coverage

A

The coverage of risks that do not fit normal underwriting patterns and that are not commensurate with standard rates is commonly referred to as "surplus lines" insurance.

Surplus lines insurance, also known as excess and surplus (E&S) lines insurance, is a type of insurance that covers unique or hard-to-insure risks that cannot be placed with standard insurance companies. These types of risks typically fall outside the normal underwriting patterns and coverage offered by standard insurance carriers.

Surplus lines insurance is typically provided by specialized insurance companies known as surplus lines carriers. These carriers are licensed by state insurance regulators to provide coverage for unique or non-standard risks that cannot be insured through standard insurance policies.

In contrast to standard insurance carriers, surplus lines carriers are not subject to the same regulatory requirements or financial strength ratings. Instead, they rely on their expertise in underwriting and risk management to provide coverage for non-standard risks.

In summary, surplus lines insurance is used to cover risks that do not fit normal underwriting patterns and that are not commensurate with standard rates. Surplus lines insurance is typically provided by specialized carriers that are licensed to provide coverage for unique or hard-to-insure risks.