Pros of Surplus Lines

Pros and Cons of Surplus Lines

Unfortunately, getting business insurance isn’t always as straightforward as obtaining a personal home or auto plan. 

The wholesale and surplus lines business is connected to current events and trends in developing unique products and services that the standard market cannot cover. And as a business owner, you know how important it is to cover all of your bases.

Pros of Surplus Lines

Surplus lines have multiple benefits for businesses and can help patch up any gaps in regular coverage. Some of the perks of surplus line insurance include:

  • Increased Flexibility: Surplus lines help agents get complete coverage for their clients. Businesses that are considered high-risk or have an issue with their ability to be insured can turn to surplus lines to protect their assets.
  • Higher Policy Limits: Depending on the size and scope of your business, you may need an insurance policy that has more coverage than a typical policy will get you. Surplus lines carriers offer a higher limit so you can get the protection you need.
  • Higher Guarantees: Standard insurance policies have state guarantee funding caps on the payout per claim, and in certain states, the policyholder’s income level may prevent them from collecting on a claim at all. Because surplus lines aren’t regulated like regular policies, there won’t be as many obstacles to receiving the funds you’re owed.
  • More Innovation: Surplus lines allow you to be covered while you think outside the box. And you’ll also be shaping the future of insurance as surplus lines for new products or services can influence policies down the line. (I guess that’s more of a perk for insurance nerds like us, but it means you can get insurance while you’re testing out something new.)
  • Better Understanding of High-Risk Clients: Working with a surplus lines broker means that you’re working with someone who is well-versed in handling difficult-to-insure businesses. Surplus lines brokers are extremely creative, and most of us love a puzzle, so no matter how weird you think your idea is, chances are your surplus line broker will be thrilled.

Craig & Leicht for All Your Surplus Line Needs

At Craig & Leicht, we cover weird.

We’ve written policies for everything from corn mazes and petting zoos to mobile food stands to construction equipment and more!

We’ve been in this business for years, and we’re backed by phenomenal organizations like Texas Professional Insurance Agents and Texas Surplus Lines Association.

More than that, we promise to give you the best coverage and quickly. Seriously. We know you’re busy, so we aren’t going to make you wait a week for an insurance quote. Get your quote today.


XPT: Craig & Leicht is now part of XPT Specialty, your eXpert Partner Team

Tap into niche market insights and expertise with more markets and products.