Specialty lines insurance markets are a segment of the insurance industry where unusual and difficult to asses risks are taken for consideration of insurance coverage. People needing specialty lines insurance are generally the most unusual and/or highest risks. Specialty lines markets require a high degree of specialization during the Underwriting process. With this type of insurance each insurance Application is carefully reviewed, and the premium is determined by the underwriters. Generally, with specialty lines a Binder is not issued and that applicant will need to wait for the company to determine “if” they are willing to insure the risk and for what premium.

An example of an unusual or difficult product is professional liability for a trustee, and an example of a higher risk account would be a manufacturer of explosives. The professional liability line is included in the specialty lines market because the underwriting, rating and claims functions require a high degree of expertise and experience. The explosives manufacturer would be included because of the unique products liability exposures presented and the potential claim severity.

Insurance in the specialty lines market is provided on an admitted (licensed) basis or a surplus lines (non-admitted) basis.