There are several reasons why you might consider buying insurance with an Excess and Surplus (E&S) carrier. Here are some key points to consider:
1. Specialized Coverage: E&S carriers often provide coverage for unique or hard-to-insure risks that standard insurance companies may not cover. They have the flexibility to tailor coverage to meet specific needs, making them a suitable option for businesses or individuals with non-standard insurance requirements.
2. Higher Risk Tolerance: E&S carriers are typically willing to underwrite higher-risk policies that standard carriers may avoid. If you have a high-risk business or property, an E&S carrier may be more willing to provide coverage, although it may come at a higher premium.
3. Market Access: E&S carriers have access to a different market than standard insurers. They work with surplus lines brokers who have access to a network of specialized underwriters and insurers. This broader market access can be beneficial if you are struggling to find coverage for your particular risk profile.
4. Flexibility in Policy Terms: E&S carriers have more flexibility in setting policy terms and conditions. They can offer higher coverage limits, broader coverage options, and unique endorsements that may not be available through standard carriers. This flexibility allows for more customized insurance solutions.
5. Claims Handling Expertise: E&S carriers often have experienced claims professionals who are well-versed in handling complex claims. They understand the unique risks they insure and have the expertise to efficiently handle and resolve claims, which can be crucial in the event of a loss.
6. Risk Management Services: Some E&S carriers offer additional risk management services to their insureds. These services may include loss control inspections, safety training, and risk assessment tools to help minimize risks and prevent losses.
It's important to note that while E&S carriers offer valuable benefits, they may also have higher premiums due to the specialized nature of the risks they underwrite. It's recommended to work with an experienced insurance broker who has expertise in the E&S market to help you navigate the complexities and find the right coverage at the best possible terms for your specific needs.