The Essential Role of the E&S Market vs. Perception

July 1, 2019

An E&S line could be a good option for typical risks that have been denied in the past.

A large number of agents tend to think that E&S lines markets are only used for those one-off type risks or poor/high risk business. While E&S can be used to place one-off risks, it can also be a good home for risks that have been denied by a standard carrier for a variety of reasons and the business can still be a “good risk." For example, a risk could be denied for the size of business, prior loss history, class type, location etc. 

Over the last several years, wholesalers and carriers have seen a large increase in the need for this type of insurance as clients face new and complex issues. Some risks are simply too high for a standard carrier to take on, and yet, the need is there. Not because the business necessarily fits the normal perception that comes along with "non-standard business," but simply because we're seeing an emergence of unprecedented issues arising with regards to technology and how it has altered the landscape of nearly every aspect of our lives.

This is a wonderful opportunity for the specialty lines markets to provide a critical service to consumers.