There’s a common misconception that excess & surplus (E&S) and specialty lines coverage is only for business that has been historically rated high-risk or for those one-off, hard-to-place risks that cross your desk a few times a year. But as carriers tighten their requirements for writing standard business, having relationships with E&S carriers can help you provide essential coverage for homeowners and business owners who don’t qualify for standard policies.
If you aren’t already enrolled in the Smart Choice® Express Markets™ program, here’s a look at how getting directly appointed with E&S and specialty lines carriers through Smart Choice® can help you serve more customers and make more money this year.
E&S and Specialty Lines Basics
E&S and specialty lines insurance covers business in personal lines and commercial lines markets that standard carriers deemed too risky. Business that is a good candidate for an E&S policy may have several past losses or liability lawsuits in its insurance history or be considered a high-risk class. The business may also be located in a ZIP code that is deemed risky or simply be too large to insure with a standard policy.
If you partner with top-rated carriers, writing E&S business is not very different from writing standard business. The underwriting process may take a bit longer so the underwriter can gain a comprehensive understanding of the risk and properly write the policy. Many E&S carriers work in a particular specialty, such as restaurants or non-standard auto insurance, so you may need to become appointed with multiple carriers to build out a strong book of E&S business.
Hard-to-Place Risks in the Personal Lines Market
Common personal lines risks that are tricky to place in the standard market are easy to place in E&S markets. High-value homeowners and vacation and secondary homes, including coastal homes, are often good candidates for E&S coverage. Rental and vacant properties are often hard to place in the standard market, but easy to write with an E&S carrier. Mobile and manufactured homes are also good risks to place through E&S markets.
If you have several car enthusiasts in your book of business, make it a priority to get appointed with our E&S auto carriers. They write classic cars and motorcycles, antique cars, and even historic military vehicles. Several also write insurance for non-standard autos to cover high-risk drivers, drivers with past DUIs, or non-owner drivers.
Hard-to-Place Risks in the Commercial Lines Market
Many hard-to-place risks in the commercial lines market can be written through E&S carriers. Several Express Markets™ carriers work specifically in the hospitality industry, insuring bars, breweries, hotels, night clubs, restaurants, and sports venues, and writing liquor liability. Other carriers cover the artisan trades and other specialty businesses. With an E&S carrier, you may have an easier time writing general contractors, HVAC companies, electricians, handymen, roofing contractors, and landscapers, as well as companies that maintain commercial auto fleets.
Carriers in the Express Markets™ Program
Dozens of carriers participate in our Express Markets™ program, and the list is always expanding. Here’s a list of just a few of the Express Markets™ carriers:
- Argenia Flood
- Attune
- BTIS
- Burns & Wilcox
- CRC
- Dovetail
- Hagerty
- Hiscox
- Mexico Online
- National General
- RPS
- RMS
- SES
- Sport Underwriters
- Tapco
- Tokio Marine
- Vindati
- Wright Flood
Make More Money with Express Markets™
Smart Choice® created the Express Markets™ program to give you instant access to the top-rated E&S and specialty lines carriers in the country. It’s easy to get directly appointed with E&S carriers through Express Markets™. There are no fees or minimum production requirements to participate in the program, you continue to own 100 percent of your book of business, and 100 percent of the commissions on Express Markets™ business is paid to you. To enroll in the program, speak to your State Director.
The Role of Excess, Surplus, and Specialty Markets in Insurance Agencies
There's a common misconception that excess & surplus (E&S) and specialty lines coverage is only for business that has been historically rated high-risk or for those one-off, hard-to-place risks that cross your desk a few times a year. But as carriers tighten their requirements for writing standard business, having relationships with E&S carriers can help you provide essential coverage for homeowners and business owners who don't qualify for standard policies. Check out the 2020 Issue 2 of Smart Choice Magazine for more.