Specialty insurance can be nuanced, layered, and full of unexpected exposure. A coverage gap doesn’t always stem from oversight. It often emerges quietly, as operations evolve or assumptions go unchallenged. Standard forms don’t always follow where the business goes. Having access to smart, specialty property and casualty insurance products makes it easier for brokers to stay aligned with their clients’ changing needs, without slowing down the process.
Where Coverage Gaps Happen Most Often
Coverage gaps often begin with assumptions, especially about what standard forms actually cover. Many policies provide foundational protection, but specialty exposures can fall outside the scope if not identified early. Some of the most frequent sources of coverage gaps include the following.
Overly Broad Assumptions About Base Coverage
Property forms may not extend to off-site storage, mobile equipment, or leased locations without specific endorsements. For example, imagine a retailer leasing temporary warehouse space during renovations and assuming the existing property coverage would apply. If a fire were to damage stored inventory, the claim could be denied due to the lack of coverage for that specific location.
Contractor Tools and Equipment
If gear is routinely transported or stored off-premises, property coverage may not respond unless an inland marine or floater is added. Consider a contractor whose trailer filled with tools is stolen from a job site, only to find the loss falls outside the limits of the base property policy.
Operational or Liability Shifts
Companies adding consulting, design, or tech-based services can unknowingly trigger professional exposures excluded from general liability. For instance, imagine a marketing firm that begins offering software development services to clients. If a glitch in one of their deliverables causes business interruption, the client may sue. Yet the firm’s general liability policy may exclude coverage for errors tied to professional services.
Inadequate Excess Limits
As businesses grow, so do their contractual and liability exposures. If excess layers aren’t reviewed periodically, clients may be left underinsured. Picture a construction company that expands into larger commercial projects. If a liability claim arises that exceeds their umbrella coverage, the remaining costs could fall directly on the company.
These gaps can lead to uncovered claims, reputational damage, or client churn. One of the most common culprits is the presence of exclusionary endorsements, particularly when policies aren’t revisited after operational shifts. A proactive review can prevent small oversights from becoming big problems.
Specialty Lines That Deserve a Second Look
Certain coverage lines are often misunderstood or omitted altogether. While they may not apply universally, these areas tend to offer brokers the greatest opportunity to provide strategic value.
Directors & Officers (D&O)
Many private or family-owned businesses mistakenly believe D&O is only for public companies. But ownership disputes, employment practices claims, or governance missteps can create real exposure. For example, imagine a private company executive is accused of misrepresenting financials during a vendor negotiation. If the vendor sues the executive personally for breach of fiduciary duty, legal defense costs could fall on the individual — unless D&O coverage is in place.
Inland Marine & Property Floaters
Businesses with mobile tools, equipment in transit, or inventory housed in storage units are unlikely to have adequate protection under a base property form. Consider a specialty food distributor storing backup inventory in off-site refrigerated containers. Without a floater, damage from a power outage may not be covered.
Excess & Umbrella Coverage
Especially in the E&S market, excess layers must be recalibrated as businesses expand or take on new contracts. Imagine a manufacturer that increases production volume and begins shipping nationally. If a liability claim from a product defect results in a high-dollar settlement, outdated excess limits might fall short.
Cyber and Tech Liability
Tech-enabled operations often introduce advisory services or data handling exposures. For example, a logistics firm using proprietary tracking software could face exposure if a cyberattack compromises client data. These scenarios are becoming increasingly common. In 2023, the number of reported cyber insurance claims rose to 33,561, reflecting the growing frequency and financial impact of cyber incidents. Without cyber liability coverage, these types of losses may not be addressed under a general liability policy.
Even long-standing clients with “stable” operations may have shifted their risk profiles in subtle ways. Specialized insurance programs can help brokers respond to those shifts with precision and confidence.
Cochrane’s Role in Closing the Gaps
Cochrane & Company designs insurance programs that flex with the realities your clients face, whether that involves mobile equipment, professional services, or fast-changing liability exposures.
We work closely with brokers to structure forward-thinking coverage strategies that close gaps before they become problems. With deep market access and decades of experience in niche risks, our underwriters bring clarity and momentum to your client relationships.
From structuring excess layers to fine-tuning inland marine coverage, Cochrane & Company is here to help you bring sharper, stronger protection to every account you manage. That’s how you keep earning the trust your clients place in you.
About Cochrane & Company
For more than six decades, Cochrane & Company has been proudly at the forefront of the insurance industry. Our experience has enabled us to innovate in powerful ways, reimagining the E&S market, and providing technology solutions that make it easy to do business with us. Licensed in all 50 states, we proudly serve clients across the nation, providing personalized and powerful solutions to help you become an even better partner for your clients. Speak to one of our experienced professionals today by calling (855) 967-0069.
