How do 'excess and surplus lines' differ from standard insurance?

Excess and surplus lines are specifically designed to address unique or high-risk situations that traditional standard insurance companies may refuse to insure. Standard insurers often have strict underwriting guidelines and risk assessments, which can leave certain risks uninsurable due to their complexity or higher likelihood of loss. Excess and surplus lines fill this gap by offering coverage for businesses or individuals that present unusual risks, such as those in specialized industries, or those with a history of claims that standard insurers would find unacceptable.

This type of insurance often features more flexible terms and conditions, accommodating the unique needs of a particular risk. It's important to note that while standard insurers focus on low-to-moderate risk profiles, excess and surplus lines accept higher risks, thus serving a crucial function in the insurance market where there are gaps in coverage from traditional avenues.