Excess and surplus (E&S) insurance is a fascinating part of the insurance world, as it offers coverage for risks traditional insurers cannot or will not handle. With 2025 shaping up to be a pivotal year for this market, it’s crucial for independent agents to understand the nuances of E&S insurance to serve clients effectively and expand their business opportunities to new sectors. Here’s an overview of what’s to come.
Demand for E&S Insurance is on The Rise
E&S insurance is designed for risks that traditional carriers won’t underwrite, like high-risk industries and those with unique liabilities (self-driving cars). There’s a reason the demand for E&E insurance is increasing. With the widespread natural disasters of recent years and new technologies like self-driving cars, traditional carriers are becoming more selective in what they’re willing to cover.
Economic factors are also playing a role in this increased demand. Rising costs for materials and labor are pushing premiums higher, especially in commercial property and casualty insurance. As rates remain high, more businesses may explore E&S insurance for cost-effective or alternative coverage options.
Independent agents have the opportunity to offer E&S as a solution for those cases where traditional carriers decline or offer limited options. Stay informed about these trends to identify and market to other underserved industries.
Industries to Watch for E&S Insurance Needs
Excess and surplus (E&S) insurance is quickly becoming a must-have for certain industries. Here’s a quick look at who’s relying on it and why:
- Cannabis: With legalization spreading, businesses in this sector need tailored insurance that covers their unique risks, and E&S is stepping up to fill that gap.
- Construction: High-risk projects and large-scale builds often fall outside the scope of standard policies. That’s where E&S becomes essential for contractors looking for reliable coverage.
- Cybersecurity: As cyber threats increase, companies with weaker defenses are turning to E&S insurers for comprehensive policies they can’t get elsewhere.
- Renewables: Think wind farms, solar panels, and other unconventional energy projects—these ventures need specialized policies that traditional carriers don’t offer.
- Entertainment: Whether it’s big events, performers, or unique liabilities, E&S insurance is a natural fit for this dynamic industry.
These sectors are driving demand for E&S insurance. You may begin seeing interest in this flexible insurance option from these industries in 2025.
E&S Must Be Flexible Yet Stay Within Boundaries
E&S policies aren’t one-size-fits-all. They’re designed to adapt, which makes them perfect for businesses in emerging industries like renewable energy or individuals with complex needs. Whether it’s a niche business or a high-net-worth client, E&S has solutions for each situation.
However, even though E&S insurers have more flexibility, they still operate within state guidelines. These include:
- Documenting that standard market coverage was unavailable.
- Ensuring taxes and fees are appropriately filed and paid.
- Working with licensed brokers who understand state-specific rules.
Since E&S policies are often placed through surplus lines brokers, it’s important to establish relationships with these experts. Partnering with licensed brokers ensures regulatory compliance and expertise in creating and placing non-standard policies.
Make a Plan to Grow Your E&S Offerings
If your agency is interested in growing your E&S offerings, first, build your expertise in E&S and identify which niches you’d most like to target. Then begin training your staff, ensuring they understand the risks of these particular industries. Encourage them to pursue additional education, becoming a Surplus Lines Insurance Broker (SLIB) or similar credentials.
At the same time, strengthen relationships with surplus lines brokers to gain access to a wide array of E&S carriers. Make connections with the carriers in your chosen niches, like cyber liability or cannabis. It may also be necessary to hire specialists experienced in underwriting and placing E&S policies.
Next, audit your current book of business to find gaps where E&S policies may apply. (Bold Penguin may be able to help!) Team members should also be trained to look for E&S coverage opportunities during client reviews. If budget allows, consider assigning a dedicated E&S specialist within your agency.
Once the training and connections are in place, it’s time to start creating an E&S marketing campaign to educate and attract potential clients.
Marketing Strategies for E&S Insurance
If you’re interested in focusing more on E&S insurance, begin by positioning your team as the E&S go-to agency. Let prospects know you’re an expert in solving tough insurance
challenges and highlight your work with industries that frequently need E&S coverage, like construction, renewable energy, and cybersecurity.
Most people don’t fully understand E&S insurance or its benefits. To help drive interest, put out simple engaging content—like blogs, infographics, or short videos—that explain how it works. Consider hosting casual lunch-and-learn sessions designed for tech startups or contractors. A webinar can also be helpful, as some potential clients may prefer to learn from the comfort of their homes.
It’s also a good idea to connect with decision-makers in industries that rely on E&S insurance. Use LinkedIn and other platforms to network, attend industry events, and get featured in trade publications your target audience reads. Maximize digital advertising, using keywords like “high-risk insurance” or “custom insurance solutions” on Google Ads. But don’t forget about your in-person, local contacts.
Partner with trade associations, chambers of commerce, or other local industry groups. Providing these groups with educational resources or sponsoring events can help build trust and visibility in your community.
Final Thoughts on E&S Insurance Opportunities
As we move into 2025, the demand for E&S coverage is only expected to increase, presenting a wealth of opportunities for independent agents to grow their businesses. Don’t wait to get started—take proactive steps to deepen your expertise, target underserved industries, and create a marketing strategy that highlights the unique value E&S insurance brings. Your agency can thrive in this growing sector, becoming a trusted resource for those seeking out innovative insurance solutions.