In the event that traditional insurance markets aren’t able to provide the protection you require, whether because of the complexity of risk, claims history, other regulatory restrictions, Excess & Surplus (E&S) lines insurance is the best option. But getting through the E&S market can be difficult. It’s the reason having an experienced E&S broker is essential.
We at Keen Coverage are experts in helping businesses obtain specific protection from the surplus line market. This blog will get you through how to collaborate effectively together with an E & S broker and avoid delays and ensure that you receive the most value out of your insurance policy.
What Is an E&S broker?
An E & S broker is an insurance intermediary who is specialized in arranging coverage with non-admitted insurance carriers. These insurance companies offer flexibility and customized insurance coverage for too complex risks or expensive for the traditional (admitted) market.
Unlike the general insurance agents, E&S brokers have:
- Access to multiple lines of surplus carriers
- A deep understanding of the risky industries
- Expertise in the negotiation of manuscript policies
- The ability to quickly move when time is short
Working with an appropriate broker can help you save time, stress, and money. But only if you are able to collaborate efficiently.
1. Start with a clear understanding of your risk
Before contacting one of the E&S brokers, you must know your exposure. E&S underwriting can be more involved than traditional insurance. The broker will require specific, and sometimes technical, information regarding your business or project.
Documents and information that can be helpful include:
- Business description & operations
- Loss run report (claims history)
- Financials (for large, public-facing operations)
- Information about your property, address or work location
- Prior policies and exclusions
- Risk mitigation measures (sprinklers, security, contracts, etc.)
TIP: The more upfront details you give, the more quickly your broker can shop the market and provide you with accurate estimates.
2. Communicate your objectives clearly
Tell your broker what is important the most to you:
- Are you looking for lowest premium, broadest coverage, or fastest turnaround?
- Do you have a contractual deadline or a lender?
- Are there specific coverage options you need to have? (e.g. pollution liability and excess limits)
- Do you face budgetary restrictions or cash flow issues?
Setting clear expectations can help your broker decide which markets to pursue and how to structure your policy.
3. Understand the E&S process
E&S insurance isn’t like the standard auto or home policy. The broker could be required to:
- Submit your applications to several underwriters
- Negotiate specific endorsements
- Check for quotes that can vary greatly in terms of price.
- Define the reason why certain coverage is not available or is limited
Expect a longer turnaround than traditional insurance. However, experts in the field like us are able to speed up the process when it is needed.
Tips: Ask your broker to guide you through the placement timeline, particularly in the event that the project has a firm start date.
4. Don’t hide risk, be transparent
Being honest about your company’s previous claims, history, or risk factors can save you from the last minute withdrawal of quotes or cancellations of policies.
Underwriters value sincerity. Brokers often explain the risk in a more favorable manner in the event that they are aware of the whole picture and are able to describe mitigation strategies or the most recently updated processes.
Remember: Surprises kill deals. Transparency helps build trust.
5. Be responsive to broker requests
The E&S market is competitive, and rapidly changing. If your broker asks for documents, loss runs, or signed applications, you must respond promptly.
Delays in communication may be a sign of:
- Refusing a request for an underwriter who is willing to accept it
- Higher premiums being paid due to placements made in a hurry
- Missing your project or coverage deadlines
TIP: Designate one point of contact within your team for all insurance correspondence.
6. Ask smart questions (But trust the process)
You don’t need to be an expert in insurance, but having the proper questions can help you feel more confident about your insurance coverage.
Ask your broker:
- What is the reason this coverage isn’t offered in the standard market?
- What is the strength and rating of the surplus line carriers?
- What are the most significant restrictions or exclusions?
- Does this policy have a renewable status or is it specific to the project?
- Do you have payment plans or other financing options?
However, avoid micromanaging the quote process, E&S brokers depend on their market connections and their underwriting knowledge to offer you the best deal. Let them do what they are supposed to.
7. Review the policy carefully
E&S policies are often manuscripted, meaning they don’t follow standard forms like ISO policies. This means that the process of reviewing policies is very important.
Your broker should be able to guide you through:
- Coverage limits
- Deductibles and self-insured retentions
- Exclusions and endorsements
- Policies triggers, and the reporting rules
- What happens after renewal or the project’s completion?
TIP: Don’t just look at the cost, instead focus on the value of coverage in general and how it is matched to your requirements.
8. Plan for renewals and long-term strategy
Certain E&S policies are drafted as project-specific, short-term, non-renewable. Partner with your broker to develop a risk-management strategy.
- Provides coverage continuity
- Develops a stronger profile of underwriting over time
- Opens the door to conventional markets for the future.
Keen Coverage collaborates with clients year-round, not only during renewals, to develop and improve the risk-placement strategies of clients.
9. Use your broker as a strategic advisor
A reputable E&S broker goes beyond a provider. They’re also a risk advisor.
At Keen Coverage, we assist clients:
- Navigate compliance and surplus lines tax filings
- Reduce claims through proactive loss control
- Compare E&S with the admitted market options
- Multi-policy program structuring (e.g. liability + builder’s risk + excess)
By involving your broker early in the process, you will be able to prevent costly mistakes in insurance later.
Final thoughts
The process of working in partnership with an E&S broker need not be difficult, but it requires clear communication, clarity and confidence. The most effective results are achieved through real partnership, where your broker becomes an extension of the risk-management team.
In Keen Coverage, We have experts in helping businesses get an effective, flexible protection when the standard market says no. If you’re a contractor, hospitality owner, developer or manufacturer, we’ll assist you to get the coverage you need, quickly.
Need help with a hard-to-place risk or upcoming project?
Contact Keen Coverage now to speak with an experienced E&S broker who knows your industry.