The Basics of Excess and Surplus Insurance


Many individuals and companies could benefit from Excess and Surplus Insurance from Cochrane & Company. Part of providing excellent service to your clients is helping them identify areas of high risk that conventional insurance plans don’t cover. Learn more about the basics of E&S insurance so you can clearly explain the benefits of taking out this type of policy to your clients.

What Is Excess and Surplus Insurance?

E&S insurance protects your clients from financial risks in excess of standard insurance policies. This excess liability is generally taken out for casualty and property insurance purposes, especially for newer risks that have not been around long enough to inform policy pricing. Professional industries considered high risk often take out E&S insurance. Some clients may be interested in a policy if they have a history of filing insurance claims due to loss and find it challenging to obtain a traditional policy.

While you, as the insurance broker, must have a license to sell excess and surplus insurance in the state where you work, you are permitted to sell it to buyers in any state. Explain to your clients the nature of this type of insurance. The lack of a guaranty fund comes with some added risk. If the insurer goes bankrupt, a client’s claim, no matter if it’s valid, could go unpaid. For this reason, stress the importance of obtaining insurance through a reputable company like Cochrane.

Regular insurance faces limitations from state regulations that dictate pricing and the types of risks considered a covered event. Sometimes the gap left between these standard insurance policies and your client’s actual financial liability is too large to leave unaddressed. Excess and surplus insurance don’t apply these same restrictions, so these policies are adaptable and can take on more significant risks.

What Are the Different Types of Excess and Surplus Insurance?

E&S insurance is personalized coverage adapted to many various situations and needs. Some examples of what an excess liability policy could cover include the following:

  1. Moving hazardous materials
  2. A one-time event
  3. Expensive luxury goods, such as classic cars and art
  4. Flood insurance (in some locations)
  5. Amusement parks
  6. Fireworks displays
  7. Kidnap and ransom

Some brokers even arrange these policies for homeowners who can’t obtain homeowners’ insurance conventionally. Each state has a list of various types of insurance not available through regular insurers and which surplus line insurance can cover. The policies are highly customizable to meet any need your client has. It’s important to note that these policies differ from umbrella insurance, as the risks covered aren’t insurable through regular insurance underwriting.

Where to Get the Best Excess and Surplus Insurance

Excess and surplus insurance is available through Cochrane & Company. Since its establishment in 1960, Cochrane provides brokers with excellent products to offer clients, along with personalized service. Get the support you need to establish long-term relationships with clients by providing them with the best possible insurance options.

Any small business that operates in an industry with a high rate of insurance claims, such as tree services and roofers, should have excess and surplus insurance. Companies like these frequently face exposure to hazardous situations. Other businesses that can benefit are new companies that standard insurers shy away from because they need more data to determine their risk level.

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.


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