Glossary
Surplus lines
Surplus lines insurance, also called excess and surplus or E&S, is coverage placed with non-admitted carriers: insurers not licensed in the insured's state but permitted to write risks the standard market declines. It exists for hard-to-place business: unusual operations, rough loss history, new ventures, or coverage admitted carriers simply will not offer.
When an account goes E&S
An account usually lands in surplus lines after the admitted market says no. In a hard market, more accounts get pushed there as admitted carriers tighten appetite. A retail agent typically cannot access E&S carriers directly. The placement goes through a wholesale broker or MGA that holds a surplus lines license.
Many states require a diligent search first: documented declinations from admitted carriers before the risk can be placed non-admitted. The wholesaler usually handles the filing, but the retail agent supplies the declinations, so keep them.
What changes for the client
Two things. First, non-admitted carriers are not backed by the state guaranty fund, so if the carrier fails, there is no state backstop. Second, surplus lines premium taxes and stamping fees get added on top of premium and filed by the surplus lines broker, which is part of why E&S invoices look different.
E&S policy forms are not state-standardized either. Terms, exclusions, and minimum earned premium provisions need a closer read than an admitted policy. Lloyd's of London syndicates are the classic example of an E&S market most agents will run into.
Common questions
Is surplus lines the same as non-admitted?
Close. Non-admitted describes the carrier's licensing status. Surplus lines is the regulated channel for placing business with those carriers through a licensed surplus lines broker.
Does E&S mean lower quality coverage?
No. Many E&S carriers are financially strong and carry solid financial strength ratings. The difference is regulatory, not automatically quality. Check the rating and read the form like you would any market.
Part of the Relay insurance operations glossary. Updated 2026-07-11. See how we source content.
Get started
Get on the Summer ’26 list.
Spring ’26 is full. Get on the Summer ’26 list and we will be in touch as spots open.