When can excess lines insurance be written?

Excess lines insurance can be written when no admitted insurer offers the needed line of insurance. This means that an excess lines carrier is utilized when the coverage required by the insured is not available from licensed companies that are authorized and regulated in the state. This situation often occurs for niche or high-risk markets where standard insurers typically do not provide coverage due to the perceived risk or nature of the insured's business.

The role of excess lines is crucial because it allows policyholders to obtain necessary insurance coverage that they would otherwise be unable to secure in the traditional market. Once it is established that no admitted insurer is providing the specific coverage, an excess lines broker can help find a suitable non-admitted carrier willing to underwrite the insurance.

In this context, even if a policyholder requests excess lines insurance, it must first be determined that the desired coverage isn't available from an admitted insurer. Approval from the insurer or exceeding standard rates are also not prerequisites for placing excess lines insurance; rather, they focus on availability in the market.