by Mike Miller
E&S. Excess & Surplus. Surplus Lines. Specialty Markets. Non-Standard Business. Non-Admitted Insurance. Express Markets™. Confused yet?
While I can’t explain why it has so many names, I can help you make sense of this useful and profitable insurance market and show you how to take advantage of excess & surplus (E&S) carriers to cover your customers’ risks, especially in this hard market. If you’ve heard your State Director or other independent agents talk about Express Markets™ or E&S carriers but you’re not sure what they are or how to use them (or you want your team to learn how to use them), this article’s for you.
What is E&S insurance?
E&S insurance is a specialty insurance market. E&S carriers insure things that the standard carriers will not write. In other words, E&S carriers specialize in difficult or high-exposure risks. When your standard carriers (such as those in the Smart Start or Agents programs) say no to a risk, chances are high that an E&S carrier can write the business.
Because of the increased risk, it is common for E&S premiums to be higher than premiums in the standard market. However, E&S carriers have more flexibility and can customize a policy to a specific customer. When standard options are limited, an E&S policy can be a boon to customers that need insurance.
What makes a risk non-standard?
Many factors may cause a standard carrier to say no to a risk. Your customer may have a poor loss history that spooks standard carriers. Or, they may be in an emerging industry, such as cannabis, that standard carriers haven’t figured out how to write yet. Other customers may have unique or high risks that make the chances of a claim more likely, such as an elevated risk of personal injury or exposure to flooding, fires, or other natural disasters. New businesses may have a hard time finding insurance in the standard market, too.
Market changes can push risks that were once easy to write with standard carriers into the non-standard market. In the current hard market, many agents have experienced the frustration of not being able to place business that used to be attractive to standard carriers. The E&S market has filled a huge need for businesses that fall into this category. And when the market shifts back, you can requote the business with standard carriers and save your client some money.
Can you give me examples of non-standard risks?
The E&S market is vast. In short, if the risk exists, I can almost guarantee you that there is a carrier that will write it. Here is a short list of some of the most common E&S risks:
- Artisan contractors, such as roofers and handymen
- Bars, pubs, and taverns
- Breweries
- Commercial auto fleets
- Mobile and manufactured homes
- Cybersecurity
- Drivers with poor loss histories
- Dry cleaners
- Trucking
- Vacant homes
When would I use E&S carriers?
Agents would use an E&S carrier to write any non-standard risk. Most agents try to shop the business with their standard carriers first, as premiums will be likely be lower. If they can’t find a solution with a standard carrier, they will quote the business with E&S carriers.
Knowing a risk is non-standard requires some experience. The more you quote, the faster you’ll learn which risks your standard carriers will turn down. There are several types of risks that are almost always written in the E&S market.
Do I have access to E&S carriers through Smart Choice?
Yes! Our Express Markets program is where you’ll find our E&S carriers. Our 40+ Express Markets carriers write hundreds of different types of non-standard risks.
It is fast and easy to get appointed, and you’ll never pay a fee or need to meet a production requirement. Even better? You earn 100% commissions on the business you write with Express Markets. Visit www.expressmarkets.com to learn more about this valuable program.
Ready to get quoting? Get in touch with your State Director or Territory Manager to take advantage of everything the Express Markets program has to offer.