The intention of both E&S insurance and standard insurance is same
Though the aim of both standard insurance carriers and Excess And Surplus Lines Insurance carriers is more or less equal, the features of this two insuranceare different. The standard admitted carriers mention the business but the E&S carriers cannot mention the business. The E&S carriers do not fall under the sponsorship of the Florida State Guaranty Association i.e., FIGA rather writes a policy if in any case it is rejected by 3 admitted carriers.
E&S lines carriers and standard insurance carriers are not governed in the same way
The E&S lines carriers are not governed in the same system that the standard carriers are regulated. The E&S lines carriers are much more flexible to provide the coverage of the policy holders. The rate of charges for this insurance is also affordable that the standard insurance. Their charge is ever changing in accordance with the change of marketplace.
It is sure that the Excess and Surplus Insurance is good for the consumer, the insurance company and the insurer. It permits the carrier to recognize risks which standard insurers decline. If y8u want to go for E&S carrier, it may be considered that you could not be indicated through the standard market.
The reasons are
• The risk involvement for you will not meet guaranteed guidelines because of age, locations, losses as well as cancellation
• The risk of you is extraordinary and the standard market may not be comfortable with this.
• The risk involvement of you is definitely very large which is not covered by the standard carriers to insure it.
• The limits of liability will exceed the guaranteed guidelines for the allowable market.
When you will be insured with and E&S Insurance carrier, you have to sign a revelation form. You have to do it to confirm that you understand the terms that when your carrier will be insolvent then you will not be protected by FIGA.