What is Surplus Lines?

Due to the unique needs of our clients, we write policies with Surplus Lines / Non-Admitted Carriers.

The excess and surplus lines, or non-admitted market is comprised of property and casualty companies that provide insurance that is unavailable to businesses in the standard or admitted market due to the unique characteristics and needs of the consumers. Much of the business generally accepted by surplus lines insurers includes difficult and high capacity risks. The types of risks generally written by surplus lines insurers include directors and officers, errors and omissions, special events coverage, products liability coverage, environmental damage, employment practices liability, catastrophe property risks, and excess and umbrella coverage.

Surplus lines writers are known as non-admitted writers because they are not licensed in the state where the insured or risk is located, although they accept business from licensed surplus lines brokers. All U.S. jurisdictions have surplus lines laws which serve to protect insurance consumers by controlling the eligibility and financial standards of surplus carriers and requiring specially trained brokers and agents to assist consumers.

A.M. Best's annual studies have validated that the surplus lines market maintains financial performance and solvency rates that are on par with or sometimes even better than the admitted market.

It is important to note that these insurers are generally not unable to obtain a license in your state, rather they choose to operate on an unlicensed, surplus line basis in order to meet the needs of the client.