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Excess and Surplus Lines Insurance
General liability protection for high-risk businesses
What is excess and surplus (E&S) lines insurance?
Excess and surplus lines insurance is a market that protects businesses standard insurers won't cover. It's also known as surplus lines or non-admitted insurance.
Some companies might not qualify for standard insurance because of the type of work they do or how they operate. When that happens, they can get protection through a qualified E&S carrier that's ready to handle complex risks.
Progressive Commercial offers surplus lines coverage in most states, and our experts can help you explore general liability options in the E&S insurance market. Start a quote online or call us to talk to an agent.
Why small businesses might need E&S coverage
E&S insurance gives small businesses another way to get coverage when they aren't eligible for standard insurance. They might need E&S coverage if:
- Their business has a risk that's unusual or hard to categorize.
- Their operations involve specialized tools or processes.
- They've had changes in their business, such as adding new services or experiencing claims.
- They need coverage that standard insurers don't offer.
Understanding admitted vs. non-admitted insurance
There are two markets in insurance: admitted and non-admitted. Both types of insurance are valid, and each one helps a different kind of consumer. Here's how they differ:
- Admitted insurance is standard insurance. The carriers are backed by the state and must follow specific regulations. If the admitted insurance company goes bankrupt, the state will pay necessary claims.
- Non-admitted insurance is E&S insurance. These specialty carriers can take on greater insurance risks. They have this ability because they're not limited by the same state regulations as admitted companies.
Learn more about how the admitted and non-admitted insurance markets work.
What does excess and surplus insurance cover?
E&S insurance covers high-risk businesses, properties, and situations. It's not just one type of coverage. For instance, a contractor might require E&S insurance for general liability, while another business may need E&S for commercial property that's located in a flood-prone area.
Surplus lines insurers have more flexibility with the risks they choose to cover and the premiums they set for that coverage. This freedom allows carriers to adapt to business trends faster than standard insurers and create customized coverages.
When you get E&S insurance through Progressive Commercial, you'll enjoy the same services that you'd get with a standard business insurance policy, such as the ability to speak with an agent, file claims with the insurer, and more.
Who needs E&S insurance?
There are several reasons why small businesses might need E&S insurance, including business tenure and profession.
Admitted carriers often view companies with less than three years of experience as higher exposure. Surplus lines insurance is usually the only coverage option for these businesses.
For example, a new flower shop might not qualify for standard insurance when it first opens because it has no history to review. In that case, it could get coverage through the E&S market until it gains more experience. Over time, this florist may qualify for the admitted market.
More commonly, businesses in risky industries need E&S insurance. These include:
For example, a tree service company faces more hazards than other landscaping businesses. Employees use tools like chainsaws and cranes to cut down trees. They might also work near power lines and busy roads. As a result, most standard carriers avoid insuring them. E&S insurance companies can fill this gap.
If you need help determining what type of general liability policy is right for your business, we can help. Start a quote online at your own pace or speak with an expert.
How much is excess and surplus insurance?
Surplus lines insurance typically costs more than standard business insurance because of the heightened exposures that E&S companies take on. Claims involving high-risk professions are usually more expensive, and E&S carriers are better suited to support these types of claims.
Your rate for surplus lines insurance depends on specific features of your business, including your coverage needs and claims history. The best way to find out what you'll pay is to get a quote.
Why choose Progressive Commercial for E&S insurance
If you need excess and surplus lines insurance, you'll want to choose a company that is financially strong. You should have confidence in your carrier's ability to pay your claim if an accident occurs.
Progressive Commercial works with highly rated insurers to provide stability, flexible options, and expertise. We can help you find general liability coverage in both standard and E&S markets at any stage in your business's development. You can get a quote online or call us to chat with an agent.
