What type of insurance is provided for risks that do not meet standard carrier requirements?

Surplus Lines Coverage is specifically designed to offer insurance for risks that are not accepted by standard insurance carriers. This type of coverage fills a crucial gap in the insurance market, allowing businesses and individuals to secure protection for unusual or high-risk situations that traditional insurers may consider too risky to underwrite. Surplus lines are often underwritten by non-admitted insurers, which means these companies are not licensed in every state but are allowed to operate in the surplus lines market due to their ability to take on higher risks.

In contrast, excess insurance refers to a policy that provides additional coverage over and above what is provided by primary insurance. Primary insurance is the first layer of coverage and handles claims up to a specified limit. Comprehensive insurance generally refers to a type of coverage that protects against a wide range of risks, commonly used in auto insurance for non-collision incidents. However, none of these types of insurance specifically cater to risks that cannot be covered by traditional carriers in the same way that surplus lines do.