excess and surplus (E&S) lines insurance

Excess and surplus (E&S) lines insurance is any type of coverage that is placed with a nonadmitted insurer (an insurer not licensed to do business in a given state) but legally allowed to provide coverage under certain conditions. Risks placed in E&S lines may have characteristics that make them difficult to place in the standard market (e.g., adverse loss experience or unusual or high-hazard exposures). Captives sometimes qualify as E&S companies. Both primary and excess coverages can be purchased through the E&S market.