What is the definition of "excess and surplus lines" insurance?

Excess and surplus lines insurance refers to coverage designed for clients whose risks do not fit within the parameters of standard market policies. This type of insurance is used when an individual or business has unique circumstances, higher risk factors, or specialized needs that typical insurers are not willing or able to cover. Examples often include specific types of risks, such as certain types of liability coverage, or industries that may face unusual challenges that standard policies do not accommodate.

The excess and surplus lines market allows for greater flexibility in terms of underwriting and pricing, as well as the ability to provide solutions for risks that are considered too risky for the standard market. In essence, this type of insurance serves as an alternative solution, ensuring that clients can find adequate coverage tailored to their specific situations.