Surplus Lines

“Surplus lines” is an insurance term that means non-preferred or special when it comes to insuring difficult to place risks.  For instance, Safeco, Fireman’s Fund, Liberty, and Travelers are all examples of standard, preferred companies.  Surplus lines markets include Lloyd’s of London, Scottsdale, National Fire and Indemnity - to name just a few.  Most surplus lines you’ve probably never heard of as they are not household names.
Surplus lines companies are generally very financially sound though and are niche driven.  They normally insure or market to businesses that the standard companies won’t touch because of the risk type.  They can be more difficult to deal with, though and much more inflexible.  If your business must be in a surplus lines company, make sure you talk to your agent about exclusions and limitations to make sure you don’t have unwanted gaps in coverage.