What Are the Excess and Surplus Markets—and Why Your Business Might Need Them

When business owners think of buying insurance, they typically imagine a straightforward process: call an agent, answer a few questions, and get a quote from a well-known insurance company. For many businesses, especially low-risk, established ones, that works just fine.

But what happens when your business doesn’t fit that standard mold?

Whether you’re launching a brand-new company, working in a higher-risk industry, or need coverage that standard insurers just don’t offer, you may find yourself in need of what’s called the Excess and Surplus (E&S) market. These markets provide insurance solutions for risks that fall outside the boundaries of what most traditional (or “standard”) insurance companies are willing to cover.

At Aspire Insurance Agency, we specialize in helping business owners navigate this lesser-known part of the insurance world—and ensure that even when your risk is unique or challenging, you still get the protection you need.

Let’s walk through what the E&S market is, who it’s for, and how we help you every step of the way.

What Is the Excess & Surplus (E&S) Market?

The E&S market is a specialized segment of the insurance industry that offers coverage for risks that are too new, too complex, too high-risk, or too unconventional for standard insurance carriers.

Here’s the key idea:

Where standard insurers rely on strict underwriting guidelines and pre-approved policy forms, the E&S market offers flexibility. That flexibility allows underwriters to craft customized policies for unique risks—something standard carriers often can’t or won’t do.

To access these markets, insurance is typically placed through specialized intermediaries called:

• Wholesale Brokers

• Managing General Agents (MGAs)

• Program Administrators

  
  

These professionals work with carriers that operate outside the standard insurance distribution system. Some of those carriers are non-admitted (not licensed in the state but legally eligible to write business), while others may be admitted, depending on the program and carrier structure. It’s a common misconception that E&S always means non-admitted—many E&S programs are backed by admitted companies.

Why Would a Business Use the E&S Market?

Businesses may need E&S coverage for a variety of reasons:

1. New Ventures

Start-ups and businesses with no prior insurance history are often declined by standard carriers, simply due to lack of data.

2. High-Risk or Specialized Industries

Some classes of business carry more inherent risk, or have unique exposures that don’t fit traditional underwriting models. These include:

• Roofing and high-elevation construction

• Janitorial companies with medical or industrial clients

• Excavation, demolition, and blasting operations

• Armed and unarmed security services

• Bars, nightclubs, and adult entertainment

• Cannabis operations

• Environmental contractors

• Certain types of product manufacturers or importers (e.g., supplements, electronics, chemicals)

  
  

3. Complex or Unusual Exposures

Businesses that host large events, work internationally, or own vacant or distressed properties may require specialized underwriting.

4. Past Claims or Lapses in Coverage

Businesses with prior losses or coverage gaps may need E&S solutions when standard insurers won’t provide terms.

How Our Agency Helps You Navigate the E&S Market

Securing insurance through the E&S market can be more involved than buying a typical policy. That’s where we come in.

As your independent insurance agent, our role is to make this complex process simple, efficient, and transparent. Here’s how we do it:

1. Understanding Your Business

We start with a deep dive into your operations, exposures, experience, and goals. The more clearly we can present your risk, the more competitive the offers we can secure.

2. Gathering Information and Completing Applications

E&S carriers require detailed applications, often including supplements, narratives, or loss runs. We help you compile everything needed—accurately and quickly.

3. Identifying the Right Markets

We leverage our relationships with wholesale brokers, MGAs, and specialty programs to find the best fit. Whether it's a non-admitted carrier or an admitted program through an E&S channel, we match your needs with the right market.

4. Requesting Quotes and Reviewing Terms

We request quotes from multiple sources, review all coverage forms, limits, exclusions, and conditions—so you don’t have to. We ensure you understand what you're buying.

5. Discussing Options and Proposing Solutions

We explain each option in clear terms, identify trade-offs, and help you make an informed decision based on your needs and risk tolerance.

6. Negotiating Coverage and Premium

We work with our wholesale partners to negotiate the best possible coverage terms and pricing—advocating on your behalf at every stage.

7. Binding Coverage and Ongoing Support

Once you choose a policy, we handle the binding process, issue certificates, and support your business with service, audits, renewals, and claims advocacy throughout the year.

Admitted vs. Non-Admitted Carriers: What’s the Difference?

Here’s a quick comparison:

	Admitted	Non-Admitted
Licensed in your state?	Yes	No
Regulated by state insurance department?	Yes	Limited
Subject to state rate and form approvals?	Yes	No
Covered by state guaranty fund?	Yes	No
Offers more customized terms?	Usually not	Yes

We work with both admitted and non-admitted carriers in the E&S space. Although admitted is preferred to non-admitted, occassionally non-admitted is the only option, and for certain types of buisneses it's common. Our primary focus is on the coverage you need and the financial strength of the carrier (typically A-rated or better with AM best)—no matter the licensing status.

Premium Financing: Making Coverage Affordable

Because E&S carriers often require payment in full at binding, we offer premium financing options to help spread out the cost over time. Premium financing involves making a portion of the premium payment yourself (the “down payment”), while the finance company pays the remainder of the premium. You then make monthly installments to the finance company in exchange for a typically low finance charge. This allows you to get the coverage you need without putting a strain on your cash flow.

You’re Not Alone—We’re With You Every Step of the Way

If your business needs insurance that doesn’t fit neatly into a box, the E&S market is often the right solution. But it can be unfamiliar territory.

That’s why it makes sense to work with a trusted Independent Insurance Agent—to be your guide, advocate, and problem-solver. Your agent can bring clarity to the process, find the right coverage, and ensure you're protected for the road ahead.

Need help placing a complex or unusual risk? Contact Aspire Insurance Agency today- Licensed in KS, MO, CO, AR and OK. Let’s talk about how the E&S market can work for your business—on your terms.

(913) 904-1020

info@aspireins.com