Frequently Asked Questions
What is Specialty Insurance?
Specialty Insurance is the segment of the insurance industry that provides insurance coverage for challenging, unique, or complex exposures, and is where innovative new products are developed. The standard insurance market is where the standard (“vanilla”) personal and commercial risks are written.
Examples of Specialty Insurance coverages include Cyber, Errors & Omissions (E&O), Directors & Officers (D&O), and Employment Practices Liability (EPL). Other innovative and niche coverages and industries include:
Note that it is possible, and in fact likely, that an organization with a Specialty Insurance policy, such as Cyber Insurance, will have other policies that are Standard Market coverages. We can help with both.
The Specialty Lines market is characterized by a high degree of specialization because of the high risk and unusual nature of the exposures. Insurers (“markets”) participating in this market have specialized expertise and experience in underwriting and rating insurance for a wide range of risks. These insurers work with brokers who are experienced in placing Specialty Insurance, such as eSpecialty Insurance.
Most of new insurance product development comes from the Specialty Insurance segment. Cyber Insurance and EPL Insurance are examples of coverages that have been tested and developed in the Specialty Insurance market, and new products are being developed and tested now.
Specialty Insurance is delivered on an admitted (licensed) basis and a Surplus Lines (non-admitted) basis. The market size is difficult to accurately estimate, but we estimate annual premium volume in excess of $100.0 billion including Surplus Lines (approximately $66.0 billion).
How Do I Get Specialty Insurance?
eSpecialty Insurance is your specialty insurance expert. We have developed a streamlined process to provide multiple proposals from a range of competitive insurers, along with expertise to help you evaluate your exposures and choose the best combination of comprehensive coverage and price for you.
Put our expertise to work as you balance comprehensive Specialty Insurance coverage and cost. We look forward to working with you.
What Is Surplus Lines Insurance?
Surplus Lines, where many Specialty Insurance risks are written, is also referred to as Excess and Surplus Lines, E&S, or Non-admitted. The purpose of the Surplus Lines insurance market is to write challenging, unique, or complex exposures that the Standard Insurance market cannot write effectively.
The Surplus Lines market has regulatory exemptions that allow for flexibility in policy forms, underwriting, and rating. For insureds unable to secure insurance coverage, the Surplus Lines insurance market provides an alternative with flexibility, additional capacity, and innovative underwriting.
Surplus Lines insurance companies are generally specialized divisions of larger insurance organizations, Lloyds of London syndicates, or smaller, specialized insurers, and underwriters have significant experience and expertise within the segments of the business which they underwrite.
At approximately $66 billion in premium, Surplus Lines Insurance is an important segment of the property/casualty insurance market, often acting as a safety valve when risks become too challenging for the standard market. Today, Surplus Lines is growing faster than the standard segment as companies become more aware of the full spectrum of risks they face.
Cyber Insurance is a good example of a Surplus Lines coverage. Developed over many years, Cyber Insurance started solely in the Surplus Lines market. Today, as cyber exposures contain to increase, Cyber Insurance is available in the admitted Specialty Insurance market on a limited basis, and in the Surplus Lines market. Cyber Insurance underwriters are highly expert in cyber exposures and policy forms.
How Do I Get Surplus Lines Insurance?
eSpecialty Insurance is your specialty insurance expert. We have developed a streamlined process to provide multiple proposals from a range of competitive insurers, along with expertise to help you evaluate your exposures and choose the best combination of comprehensive coverage and price.
Put our expertise to work as you balance comprehensive Specialty Insurance coverage and cost. We look forward to working with you.
Note: Insurance policies are not all the same. Some policies are more comprehensive than others, and some policies provide broader coverage in specific areas. In addition, each insured may have different exposures and coverage needs. We encourage you to read your policy and consult with an insurance expert such as eSpecialty Insurance.