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May 2025 • New England
Shifts in the E&S marketplace
Areas are stabilizing, but there are chances
Connecticut
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Excess and surplus insurers can craft policies and can respond to market changes quickly, which helps clients find coverage for their one-of-a-kind risks—especially in a hard market.
by the numbers … E&S insurance market
E&S markets have shown notable growth over the past 6 years
For the last 5 years, E&S premiums have grown by double digits
It's estimated that 34% of U.S. commercial business is in the E&S market
E&S premiums equaled 9.2% of total direct premiums in 2023 in the U.S. (vs. 8.8% in 2022)
In 2003, there were 4 carriers with wholesale strategies; in 2022 there were 13
Developing strong relationships between independent insurance agents and their E&S carrier representatives makes it easier to have conversations about difficult-to-place risks. Even when markets constrict, a good working relationship can help everyone work together to find a suitable outcome for clients.
While many markets still feel the effects of the current hard market, there are some markets that, for various reasons, are beginning to soften, such as directors & officers, and employee practices liability insurance.
Directors & officers insurance
In the past few years, there has been an increase in new carriers that offer private directors & officers coverage, which has decreased rates. To stay competitive, some more established carriers are offering competitive pricing and positive terms. While premiums have been decreasing since 2021, the trends for 2025 show that while decreases still are happening, the pace of reductions is slowing.
The newer offerings tend to come from managing general agents and InsurTech companies, which tend to embrace technology and data analytics in their underwriting. This also increases competition and contributes to the markets softening.
In the first quarter of 2021, D&O insurance hit a peak—premiums were 4.7 times the first quarter of 2018. However, in the second quarter of 2024, premiums were down to 1.9 times the 2018 baseline.
Factors that impact the D&O sector:
Social inflation
The underwriting landscape
Rising claims costs (driven by higher verdicts and settlements)
Decreased rates and increased competition are softening the employment practices liability insurance market, as newcomers to the market increase the competitive rates in various classes and regions. However, agents should be mindful, and they should check policies to confirm that each policy has adequate coverage and to be mindful of coverage gaps—especially for new policies.
Be on the lookout …
As technological advancements continue, especially regarding AI and candidate screening, there could be an uptick in lawsuits regarding discrimination and liability.
The top employment practices litigation cases in 2020 were:
Retaliation (more than 50%) and sexual harassment claims
Gig worker classification
The gender pay gap
Medical marijuana usage
In 2025, more EPLI litigation may involve artificial intelligence, pay transparency and sexual harassment.
What PIA Northeast members say about market conditions, E&S
Occasionally, PIA Northeast asks its members about changes in premiums, underwriting guidelines, remarketing efforts and nonrenewals across major lines of business.
Last spring, the findings, which were part of the association’s Market Trends Survey, suggested that premiums were on the rise and underwriting guidelines continued to tighten. These conditions present opportunities for those agents who are looking to do business in the excess and surplus lines market. Regarding the E&S market, the survey’s 118 respondents—from across PIA Northeast’s footprint—reported the following observations.
New business. Specialty lines, which include high-risk or specialized policies, accounted for a smaller share in new business premiums, with 10% of respondents at less than 5% and a small portion (8%) of respondents at more than 26%. Notably, most (85%) respondents did not include specialty lines in their new business premiums.
While a year has passed since the last survey, you can compare these results to what you are seeing in your agency today to give you an idea of current market conditions.
Underwriting guidelines more restrictive
The survey results also seem to indicate that underwriting guidelines have tightened—particularly in personal lines:
Personal auto. Thirty-nine respondents described moderate restrictions, while 34 of those who took the survey labeled restrictions as significant.
Personal homeowners. Homeowners guidelines were even more scrutinized, with 41 respondents reporting moderate restrictions; 40 respondents noted significant restrictions.
Commercial property. Commercial property experienced moderate restrictions for 45 respondents, and significant restrictions for 40 of the survey respondents, aligning with a stable but stringent underwriting environment.
Commercial liability. A notable 53 respondents saw moderate restriction increases in commercial liability, underscoring its evolving risk profile.
As we know, when they tighten their underwriting guidelines, insurers become more selective about the risks they are willing to cover.
This can lead to higher premiums, limited coverage options, and difficulty obtaining insurance. All these factors make the E&S market more attractive to risks that have been covered in the admitted market traditionally.
Business placed through wholesalers
According to the most recent survey, the percentage of business placed through wholesalers also shifted:
Placement rates. Thirty-nine respondents placed 5-10% of their business through wholesalers, while 17 respondents placed 16-25% of their business through wholesalers.
Sixty-three respondents noted an increase in wholesale placements, which indicates a growing reliance on wholesalers—possibly due to rising specialization needs or challenges in underwriting for standard markets.
The takeaway
The survey suggests that while premium increases and underwriting tightening continues, independent insurance agents actively are remarketing and relying more on wholesalers to navigate these challenges.
The 2024 Market Trends Survey reflects a slow—but steady— hardening of the market, particularly in personal and homeowners lines, and it offers valuable insights for agents seeking to adapt to these trends.
Despite market conditions …
Regardless of whether the market is hardening or softening, the E&S market has a vital role to play in the insurance industry. It’s best for retail agents to develop strong relationships with several E&S insurers, so they know who they can turn to when they have a difficult risk.
However, PIA Northeast members also can access MarketBase,™ which has nearly 2,100 special risk categories from nearly 100 firms.
For more information, visit www.pia.org/IRC/marketbase, or call the PIA Industry Resource Center at (800) 424-4244.
Get ready for this year’s survey
How is your agency faring compared to last year? Are you finding markets softening or are they continuing to harden?
PIA Northeast is preparing to launch its Market Trends Survey for 2025, how will this year’s results compare to the results highlighted in this article?
Watch your PIA publications and take the survey to let PIA Northeast know about your experiences with current markets and their conditions.
Specialized solutions for unique risks
BRADFORD J. LACHUT, ESQ. Director of government & industry affairs, PIA Northeast
Understanding noncarrier contracts: What to know
I’m back to talk about one of my favorite subjects: contracts! In past issues of PIA Magazine, I’ve covered the perils and pitfalls agents should watch out for when signing agreements with insurance carriers.
This time, I want to shift the focus to what I’m calling noncarrier contracts. I am using that term to describe agreements you might enter with parties other than insurance carriers (e.g., an agreement with a managing general agent or an affiliation agreement).
Now, you might be thinking: “Come on, Brad, a contract is a contract. How different could NCCs be from carrier agreements?”
Great question—and thanks for adopting the NCC acronym so quickly! I think it’s really going to catch on. The answer? Sometimes they’re wildly different, and other times, eerily similar. Each type of NCC presents its own set of challenges.
A general warning
It’s impossible to cover everything an agency should watch out for in NCCs—or any contract, for that matter. But I’ll highlight some of the most important (and interesting) provisions that tend to show up in these agreements. Hopefully, this will serve as a reminder to take a closer look at NCCs before signing on the dotted line.
What to watch out for
Ownership of business. Perhaps the most critical clause in any agreement is the one that defines who owns the book of business generated through the contract. NCCs can be particularly tricky in this area for several reasons.
First, ownership provisions aren’t always easy to find. In one NCC I recently reviewed, there was a section titled Expirations. You’d think that’s where you’d find details on business ownership, right? Wrong. That section only covered renewal processes, and it barely touched on ownership at all. In fact, the agreement never explicitly stated who owned the business.
Second, another agreement I reviewed contained a nonsolicitation clause, which prevented the agency from moving any policies away from the NCC entity during the duration of the contract, and for two years afterward. Technically, the agency still owned the business but if the agency was restricted from ever moving the business while the contract was enforced, then what rights did the agency really have?
Even when an agreement does grant ownership to the agency, watch out for provisions that could cause you to forfeit that ownership. A common example is when an agency owes money to the other party—many agreements allow the other party to take ownership of the book when this happens. This is typical in agency agreements as well. Other scenarios include contract termination for cause, which can be defined vaguely. Causes can range from losing a license, to something as minor as failing to notify the other party in a timely manner.
Recently, a particularly concerning clause I’ve seen requires the company (not the agency) to be listed as the broker of record while granting the agency an “economic interest” in commissions. This setup effectively gives the company full ownership and control, while the agency only benefits financially if the agreement is in force. If the contract is terminated, the agency’s rights disappear along with it.
Restrictions on placing business elsewhere. Another key clause to watch for is whether the agreement restricts your ability to do business with other parties. I’m not talking about employee vs. independent contractor status—I mean whether the contract effectively makes you a captive agent.
For example, it’s common to see a clause in an MGA contract that require the agency to place all business exclusively through that MGA and its carriers. Only if those carriers decline to write the risk can the agency place it elsewhere. A related clause prevents agencies from entering into any contract with a carrier to which they have access through an NCC. Both could be significant limitations that could impact your agency’s flexibility and autonomy.
Termination clauses. Breaking up is never easy—especially when it comes to contracts. While termination clauses in NCCs may look like those in carrier agreements, the fine print can make all the difference.
Typically, these agreements are perpetual and require notice for termination. However, some contracts don’t specify how much notice is required, meaning
We Are “Hard-to-Place” Specialists
the other party could hypothetically send a single email ending the agreement effective immediately. That’s obviously a problem if you’re not prepared for such an abrupt cutoff. Others might require the agency to pay a penalty for terminating the contract. One NCC I reviewed did just that, requiring the agency to pay a $5,000-buyout penalty for terminating the agreement.
Terminating policyholder contracts. One particularly puzzling clause I’ve seen in NCCs—especially MGA contracts—states that the MGA has the right to terminate the policyholder’s contract with the carrier.
That’s … interesting. And by interesting, I mean probably unenforceable.
Privity of contract
Here’s where I get to bring up one of my favorite nerdy legal principles (as opposed to the cool ones): Privity of contract.
Privity of contract means that a contract can’t impose obligations or grant rights to a party who isn’t part of the agreement. In this case, the MGA isn’t a party to the contract between the carrier and the policyholder. So, how could the MGA possibly have the authority to terminate the contract between the policyholder and the carrier?
Spoiler alert: It can’t. And, no matter how a separate NCC is written, it can’t magically create that authority.
Final thoughts
Noncarrier contracts can be full of surprises, and agencies need to read carefully before signing. Ownership provisions, exclusivity clauses, termination rights—these details can have major consequences.
So, before you sign an NCC, take a step back, read the fine print, and if needed, seek legal advice. Remember: PIA Northeast does offer a contract review service for its members! For more information, call (800) 424-4244 or email resourcecenter@pia.org.
Trust me, the time you spend reviewing these contracts now could save you a whole lot of headaches later.
Lachut is PIA Northeast’s director of government & industry affairs
Limits up to $5 million per premise, $10 million per policy
Building, Contents, Loss of Income, Basement Coverage
COASTAL homes
Owner Occupied, Seasonal, or Rental
TIV up to $20 million
Wind and Flood Deductible Buyback Policy
Personal Umbrella up to $10 million
Be aware of E&O implications of statements on website
In today’s errors-and-omissions litigation, it is common for statements made on an insurance agency’s website to be used as evidence against the agency that it failed to live up to standards promised on its website. For example, in one lawsuit, the insurance agent was alleged to have failed to place sufficient underinsured motorist coverage for a client. The client suffered a serious motor vehicle accident and the UIM limits on the client’s auto policy were insufficient to compensate the client for the damages. During the deposition of the agent, the client’s attorney read statements directly from the agency’s website that suggested that the agency’s mission is to deliver tailored insurance and financial solutions that protect the assets of the agency’s clients.
Then, the client’s attorney attempted to get an admission from the agent that he had not, in fact, lived up to the representations on the company’s website. While the claim ultimately was settled, the use of agency website statements by the client’s attorney was one avenue of attack in attempting to prove that the agent was negligent.
An agent’s duty
Generally, statements on websites like the example above likely do not create a duty on the part of an agent to his or her individual clients. In most states, an agent’s duty is to procure the coverage requested within a reasonable time— or to otherwise inform the client of the inability to do so. However, website statements do create fodder for use by plaintiffs’ attorneys in E&O litigation against agents. More concerning are the regular efforts taken by plaintiffs’ counsel to attempt to expand the duties owed by an agent to a client based on statements made on an agency website.
As a result, it is important for insurance agents to be mindful of the level of service and expertise they are marketing on their websites. Before you advertise it, ask yourself, do you actually do it?
Expert services?
Insurance agents also should be careful about website statements representing expertise in a particular area. Some agencies tout expertise in certain coverages, such as flood, life insurance or cyber security insurance. Other agencies market themselves as experts in certain industries, like restaurants or lumber yards.
Before you do that, make sure you really are an expert. Agents who advertise expertise in a certain type of insurance coverage or industry may be susceptible to an E&O claim if the client relied on these statements in selecting an insurance policy. The claim could be made that the agent’s advertised expertise created a higher standard of care that was owed to the client.
Final thoughts
Marketing is important for any agency that wants to grow and be successful. Always be mindful that statements contained on your agency’s website may be used against you in future E&O litigation.
Bottom line: Any statements on your website should be accurate, and they should reflect the level of service offered by your agency.
Insurance takes center stage at the Hard Rock, Atlantic City, N.J.
Fine-tune your expertise, connect with industry pros, and gain the know-how to keep your business in harmony with the latest trends in insurance.
Packed with opportunities, you’ll pick up new tools, explore fresh markets, find your next big break—and outshine your competition.
A GREAT SET LIST OF EVENTS
TRADE SHOW - DAY 1
Sunday, June 8, 4-6:30 p.m.
BOOTS & BOURBON
NETWORKING COCKTAIL RECEPTION
Sunday June 8, 5 p.m.
Sponsored by:
Kick off the conference the right way—catch up with old friends and make new ones in the networking lounge. Enjoy hors d’oeuvres, cocktails, and plenty of great conversation.
TRADE SHOW - DAY 2
Monday, June 9, 9 a.m. - Noon; 1:45 - 4 p.m.
BLOODY MARY & MIMOSA BAR: 10:30 - 11:30 a.m.
Sponsored by: Women’s Leadership Alliance
WINE & CHEESE RECEPTION: 1:45 - 4 p.m.
Sponsored by: Price & Price Enterpirses Inc.
The trade show is where top insurance professionals meet, mix and make things happen. Shake hands, swap stories and discover the latest tools and techniques that will keep your business in the spotlight.
LATE-NIGHT HONKY-TONK
YIP NITECAP
Sunday June 8, 9-11 p.m.
Join the YIP for the hottest party in town at Rock Café Backstage! Great music, dancing, and craft cocktails await as the rising stars of the insurance industry let loose and have a little fun.
NETWORKING LUNCH
Monday, June 9, Noon-1:45 p.m.
FEATURING FUNNY MOTIVATION
SPEAKER KELLY SAWANSON
Sponsored by:
Enjoy a hearty lunch and a whole lot of laughs as Kelly Swanson brings her signature charm, humor, and storytelling magic to the stage. Swanson is an award-winning storyteller, comedian, hall-of-fame inspirational speaker, Huffington Post contributor, and cast member of The Fashion Hero on Amazon Prime.
SOUTHERN NIGHT BEACH PARTY
Monday, June 9, 6:30-9 p.m.
LANDSHARK BAR & GRILL Sponsored by:
Once again, we’re taking over the LandShark Bar & Grill for a rockin’ beachside bash! Kick off your boots, sink your toes in the sand, and dance under the stars to the GoodMan Fiske Band—one of the East Coast’s hottest cover bands!
FUN RUN TO BENEFIT SPECIAL OLYMPICS NEW JERSEY
Tuesday, June 10, 8-9 a.m.
ON THE BOARDWALK Sponsored by:
A 41-year tradition continues with Fun Run 2025! Whether you run, jog, or take a leisurely stroll, every step you take helps make a difference.
PIA Education
PIA Northeast has E&O and Ethics seminars all year long. So, if you’re looking for E&O and Ethics continuing-education classes from the comfort of your own home or office, check out what PIA has to offer you.
Upcoming live online E&O and Ethics seminars:
Check the schedule as classes are added regularly.
May 20
May 29
June 12
How to Maintain Ethical Behavior in Your Agency (in partnership with PIA Virginia & D.C.)
Ins & Outs of E&O
Risky Business–Developing a Risk Control Program for Your Agency (in partnership with PIA Virginia & D.C.)
Sept. 5
Oct. 1
Nov. 3
Dec. 3
Ethical Issues in E&O
Emerging E&O Issues and Recent Court Cases
E&O Loss Prevention and Ethics … There is a Connection Oops! I Did It Again … Errors & Omissions Claims
REGISTER ONLINE HTTP://BIT.LY/3VFDBOW
SHIFTS IN THE E&S MARKETPLACE UNDERWAY
Kristen Skender Director of Corporate Development and SVP of Brokerage, Jimcor Agencies
Across the nation, the excess and surplus lines marketplace continues to grow in policy count and premium. Representing a variety of placement options in the nonadmitted marketplace, wholesale brokers and managing general agents are experiencing growth as certain risks cannot be placed in the admitted market. In the 2024 report on the market segment published by AM Best, surplus lines stamping offices reported growth of 17.4%, and a record breaking $115.6 billion in surplus lines direct written premium.¹
While most product and market sectors continue to feel the effects of the hard market, some sectors’ rates have stabilized, which has reduced the average annual percentage increases in commercial lines. Stabilizing markets include: workers’ compensation and directors & officers.
Conversely, in the commercial casualty, property and specialty market sectors, producers continue to evaluate each risk closely. For example, in the casualty sector, producers are monitoring trends in:
• social inflation,
• Nuclear Verdicts,® and
• emerging risks, including forever chemicals.
Trends in the property markets on the East Coast, include new entrants, reduced rates and increased capacity varying on the construction type, occupancy and location. Some categories of risk continue to feel the effects of the hard market, and (so far) 2025 has presented unpredictable shifts on a risk-specific basis.
These trends are influenced by recent weather events, including earthquakes, hurricanes, wildfires and floods. Each risk is modeled by its unique schedule of locations and current trends. We find the forecasts to be unpredictable, and current events can be catastrophic at times. However, the advantages of technology are starting to provide capacity by identifying areas in which additional capacity can be deployed, better utilized or an alternate risk-transfer method offered, such as parametric insurance products.
We are seeing emerging opportunities in additional capacity, new entrants into the marketplace and coverages increasing in demand in the E&S marketplace.
The need for information
These factors lead those individuals in the insurance industry to need better underwriting information, real-time data and transparent dialogues with their clients on market expectations and product options.
Having higher quality submission information empowers your wholesaler to advocate for the best rates, forms and options available in the shifting marketplace.
We are seeing that E&S carriers are requiring wholesalers to have more data points and to utilize all underwriting tools available to us to assess a risk. Their expectation of our knowledge of each risk has increased dramatically over the last few years.
New entrants in the marketplace
The pace of new carriers, product roll outs and technology are faster than ever. Partnering with a wholesaler that prioritizes providing access to limited distribution programs, new entrant carriers and unique solutions gives an edge to retail agents.
We are seeing new entrants with InsurTech or outside industry funding that seek to place policies direct to insureds or through strategic distribution partnerships of large retailers and wholesale/brokerages to capture the small- to mid-sized retailer opportunities.
Industry classes
We are observing several shifts in opportunities, in which the current marketplaces are increasing rates or nonrenewing. This offers a chance to support these businesses with new solutions and placement options. Some of these opportunities can be found in the following sectors:
Data centers for AI, crypto and other emerging tech. Opportunities are emerging as data centers pop up across the country, and expand their operations to support artificial intelligence, large amounts of data, crypto and other storage needs.
Cannabis–from seed to sale. Emerging risk categories include: growers and dispensaries in states with new legislation, delivery and transportation of cannabis products, the potential of on-site consumption/tasting, and a variety of infused beverages and food products.
Construction, including hard-to-place trades (e.g., roofers, exterior, demolition). Projects that were paused or delayed are beginning to restart this spring. Check in with your clients who had a potential project or expansion that was delayed. Now may be the time they are ready to start!
Contractors who experienced increased pricing over the last several years, continue to shop their insurance annually to explore options and increase profitability, as the cost of construction materials remains high. Committed restaurants, retail establishments and landlords are investing to make their properties the most attractive and desirable. Property vacancies and business closures also stand out as opportunities.
Churches, religious institutions or houses of worship. Several markets have exited or have shifted their appetite to be more restrictive on churches, religious intuitions or other houses of worship. We are seeing many nonrenewals, which presents an opportunity for retailers that want to get into this marketspace.
Temporary staffing companies. Pricing increases, nonrenewals and market exits impact the temporary staffing marketplace, including workers’ compensation, package and professional. There are limited markets in this industry sector—making specialized programs and wholesalers more sought after.
Security companies. Security is being required at a variety of events and venues. This increasing need for security has driven demand for insurance solutions for security guards—
including cannabis, medical, day care, gambling or other exposures, are increasing. We are seeing frequent properties under renovation, as well as a unique mix of occupancies/ tenants with a variety of retail, residential and commercial tenants in common spaces. These are creating new placement challenges for property owners that the wholesale marketplace can help solve.
Vacant properties–commercial & residential, including under renovations, additions, etc. Higher construction and materials costs are leading to increased renovations costs. Many carriers have a limitation on length of vacancy, cost of improvements or renovations and partial occupancies while under construction. These are leading many vacant property owners to the E&S marketplace for solutions.
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Gas stations and convenience stores. Gas stations with other amenities, including liquor sales, gambling, 24-hour operations, car washes or repair services are increasing. These, along with standard gas station and convenience stores, are being nonrenewed in certain regions, which presents opportunities for package, environmental/tanks and liquor to the E&S marketplace.
Day cares–in-home or standalone. The market availability and options for day cares shifted in 2024, and this shift continues in 2025. Seeking solutions as summer approaches makes this a hot market for the E&S marketplace to offer solutions for both in-home, standalone or specialized educational and entertainment/extracurricular programs.
Products–manufacturers or wholesalers. A variety of manufacturing, production, relabeling, importers and redistributors present opportunities in the products marketplace. There has been a resurgence in exploring local manufacturing, warehousing and distribution options as companies prepare for potential tariffs or restrictions that may impact the supply chain.
Personal lines–Northeast coastal homes & high-valued homes. Due to the location, property value, rental/partial tenant occupied or vacancies many coastal homes, highvalued homes and personal-lines clients seek solutions for their insurance. With renewal costs continuing to trend upward in most regions, many accounts are being marketed to review options and assure they have the best coverage and pricing available.
Coverages increasing in demand
Employment practices liability insurance. Most businesses have experienced a potential or alleged EPLI claim, but few of them have the correct coverage with a broad form, in lieu of a business owner’s policy add-on or enhancement. This can make the difference in covered claims, limits and policy exclusions. Typically, standalone polices for EPLI provide broader coverage and higher limit options.
Cyber/data breach insurance. The impact of a cyber or data event including breach, ransomware, cyberattack (e.g., phishing, smishing, vishing) can halt a business immediately. Few companies can operate without their hardware, software or networks. A variety of options are available. Offering
this coverage option to your clients protects your agency if a client experiences a cyber or data event—especially if an insured opts out of the coverage, and that declination is documented.
Active assailant insurance. The policies—formerly known as active shooter insurance—are being broadened to active assailant, which provides a broader description of the type of weapon, intent and impact. While we hope none of our clients need this type of coverage, unfortunately some businesses—places with student populations, religious buildings or gatherings of large groups of people—provide a platform for the increased potential for such incidents.
Parametric and alternative solutions. Policies that are measurable—weather or other incident—can respond immediately if a coverage trigger occurs. In many cases, parametric insurance policies will respond faster than the traditional marketplace in payment of a potential claim. These are becoming more appealing to buyers, and they are available through the wholesale marketplace.
We are seeing increased interest to explore alternate solutions and parametric products for risks. Retail agents, lenders and other stakeholders need to educate themselves on the options available in these emerging policies.
Final thoughts
The partnership between the retail agent and the wholesaler continues to be important—especially as many insurance sectors continue to feel the effects of the hard market. By working together agents and wholesalers can find the best insurance options, such as new specialties or emerging markets—for their insureds.
Skender spent three years on the retail agency side of the business, and the last 20 years in strategic leadership in the E&S wholesale market sector. She is the senior vice president, brokerage and director of corporate development for Jimcor Agencies, headquartered in Montvale, N.J. Jimcor Agencies helps navigate the E&S, specialty admitted and parametric market sectors with emerging options. For more information on the coverages mentioned in this article or other coverages, contact marketing@jimcor.com or visit www.jimcor.com.
1 AM Best, 2024 Market Segment Report (news.ambest.com/research)
BARBARA MALKOWSKI Senior vice president of marketing, Prime Insurance Company
Unlock opportunities A primer of the E&S market for agents and clients
The excess and surplus lines insurance market provides specialized coverage for risks that have been declined, nonrenewed or that possess unique underwriting characteristics. Also known as surplus lines or the nonadmitted market, this sector caters to risks that traditional insurance carriers (the standard or admitted market) are unable or unwilling to cover.
The E&S market is not constrained by rate and forms filing, which allows the carriers to create custom policies tailored to the unique characteristics of individual risks. This allows flexibility in coverage and pricing to ensure that difficult risks are covered adequately. In recent years, the hardening of the insurance market means more risks are being declined by standard carriers, necessitating placement in the E&S market, or leaving clients uninsured.
How the E&S market benefits clients
The E&S market plays a crucial role to ensure clients have access to insurance coverage—particularly for high-risk or unique situations that standard carriers deem uninsurable. Without the E&S market, clients might face gaps in coverage, be forced to go uninsured, or bear the financial burden of self-insurance in case of incidents, claims or lawsuits. By offering coverage when traditional insurers cannot, the E&S market provides essential protection and peace of mind.
A powerful example of the E&S market’s value is its response to weather-related events like wildfires, hurricanes, floods and earthquakes. The E&S market is specifically affected by weather-related events in many ways, including increased demand for coverage, higher risks, higher premiums, claims and market adaptation.
These natural disasters can have devastating effects on communities—causing significant property damage and monetary loss. Traditional insurance markets often struggle to provide coverage for these high-risk events due to the unpredictability and severity of the losses involved. As a result, many properties and risks are declined by standard carriers, leaving clients vulnerable.
The E&S market steps in to fill this gap by offering specialized insurance solutions tailored to the unique challenges posed by weather-related events. For instance, during wildfire seasons, the E&S market can provide coverage for homes and businesses located in high-risk areas that traditional insurers might avoid. Similarly, in regions prone to hurricanes and floods, E&S carriers can offer policies that address the specific risks associated with these events, such as wind and flood damage.
As the frequency and intensity of weather-related events continue to increase, the demand for specialized insurance solutions grows. The E&S market continually adapts to these
changes, to develop innovative products and coverage options to meet the evolving needs of clients. This adaptability ensures that individuals and businesses have access to the protection they need—even in the face of escalating risks. Additionally, the E&S market’s flexibility in underwriting and pricing allows it to respond quickly to emerging threats. Unlike traditional markets—which may be constrained by regulatory requirements and standardized policies—E&S carriers can create custom policies that address the specific characteristics of each risk. This ability to tailor coverage ensures that even the most challenging risks are adequately insured, providing a necessary safety net for consumers.
Looking forward, the E&S market is expected to continue to evolve in response to the increasing frequency and severity of weather-related events. Insurers are likely to develop more innovative and specialized products to address the unique risks posed by these events. The market may see further growth as more properties and risks are declined by traditional carriers—necessitating placement in the E&S market.
How the E&S market benefits agents
According to the Bureau of Labor Statistics, there were 462,810 independent sales agents in the United States as of May 2023.1 This considerable number of agents competes for the same piece of the insurance pie. However, the E&S market allows agents and brokers to expand their capabilities and provide coverage for clients in unconventional or high-risk situations.
In 2023, there was a net underwriting loss of $21.6 billion for the U.S. property/casualty industry, with personal lines responsible for most of the losses.2 Marketplace changes have affected the ability to write business, with limitations, exclusions and gaps becoming more stringent. Companies are canceling policies, closing markets, and mergers and acquisitions have tainted risk appetite, pricing and availability. The E&S market helps insurance agents provide capacity for risks other carriers refuse to cover.
The future looks bright for insurance agents willing to learn about the E&S market, and how it can help differentiate their agency by providing solutions for difficult risks and increasing their book of business.
E&S continues to deliver for producers
Instead of kicking hard-to-place risks to the curb, the E&S market provides specialty markets the ability to manage risks that have been declined, nonrenewed or have unique underwriting characteristics. An E&S lines insurance carrier
says yes when standard, admitted carriers cannot or will not provide coverage, which enables agents and brokers to expand their capabilities and books of business.
Typical types of risks written include:
• High-risk activities such as commercial auto, explosive manufacturing, firearms, logging, security guards with firearms, towing & repo, amusement & recreation, and outdoor recreation.
• Risks that do not fit standard market underwriting, such as bars and taverns, restaurants, vacant properties, homes in high-risk weather areas, and contractors.
• Risks requiring higher limits than offered by standard markets, such as $10 million or more in liability umbrellas, or $5 million or more in property limits.
• Specialty coverage needs, such as special events, concerts, hole-in-one contests, and unique situations.
• Risks with excessive or otherwise unacceptable claims/ loss history.
Mining for specialty risks
Reviewing your current book of business and conducting lifestyle and policy reviews with your clients and prospects can uncover previously undetected risks. Is their home in a high-risk weather area? Do they have dogs or exotic pets? Do they own firearms? Do they train, mentor or provide care for others? Rent or own recreation devices? Serve on a board of directors? Volunteer or coach? Certain types of business have a harder time finding insurance coverage. Does this business have commercial auto risks? Does it have vacant properties?
Another way to mine for new business is to find a list of risks that are considered difficult to place by searching the internet for state exportable lists (not all states have them, but you can find a list in Connecticut, New Jersey and New York). 3 Generally, these lists contain risks that the standard market doesn’t want to cover.
By evaluating clients and prospects, insurance agents may find they haven’t addressed all risks or didn’t know how to place some of the risks. With proper guidance, E&S can lead to successful placements of hard-to-place risks.
Some guidelines for placing risks: put the clean risks with the traditional market; put the difficult risks that take time and other resources with an E&S carrier that will help provide solutions for these risks.
How to access the E&S market
Now you know how to mine for risks, let’s move on to how you place these difficult risks. If agents don’t have a surplus license (most do not), then they will need to go through a surplus lines broker. Always ensure you check the credentials and reputation of any brokers with whom you do business.
Ways to find a surplus lines broker:
• Check a state’s insurance department website
• Check a state’s surplus lines association—not all states have them—in New York state it’s Excess Line Association of New York, and in New Jersey it’s the Surplus Lines Association of New Jersey.
• Check the Wholesale & Specialty Insurance Association or trade publications
• When all else fails, try an internet search
[EDITOR’S NOTE: PIA Northeast members have access to PIA’s MarketBaseTM (pia.org/IRC/marketbase), which has access to some 2,100 specialty risk categories from more than 100 firms.]
Use a strong E&S carrier
When seeking out an E&S carrier, it’s important to partner with a company that doesn’t compete with current markets, but instead writes the business being declined, canceled or nonrenewed, and that has a strong financial foundation. Use an E&S carrier with longevity and expertise in risk management and claims management. A strong history is necessary.
Additional factors that impact the E&S market
While weather-related events significantly impact the E&S market, other factors also affect its landscape.
One factor is the increasing cost of Nuclear Verdicts® that cause social inflation. A nuclear verdict refers to unreasonably high jury awards, while social inflation refers to the rising cost of claims and premiums (above the rate of economic inflation) attributed to nuclear verdicts. Social inflation can be driven by negative attitudes toward insurance companies and third-party litigation funding. Third-party
About Johnson & Johnson
a
litigation funding is when a third party finances a lawsuit in exchange for a portion of the judgment or settlement.
Another factor is the rise of cyber security risks. As businesses and individuals become more reliant on digital technologies, the threat of cyberattacks and data breaches grows.
The E&S market has responded by developing specialized cyber insurance products to address these emerging risks.
In summary, the E&S market is impacted by a variety of factors beyond weather-related events. By staying attuned
These are the Workers’ Comp Markets You’re Looking for!
to the marketplace and adapting strategies accordingly, E&S insurers can continue to provide essential coverage for high-risk, unique and emerging risks for insureds with the help of insurance producers.
Conclusion
The E&S lines insurance market demonstrates sustained growth, with S&P Global reporting a continuous upward trend. In 2023, E&S premiums surged by 15%, reaching a total of $86.47 billion.4 This substantial increase displays the market’s resilience and potential for expansion.
This growth trend presents promising opportunities for insurance agents and brokers to strengthen their capabilities, to increase revenue streams and to address the diverse needs of their clients.
Collaborating with established E&S carriers can empower industry professionals to effectively navigate intricate risks, distinguish their offerings, and provide tailored solutions for their clientele.
Malkowski is the senior vice president of marketing for Prime Insurance Company. The company is an excess and surplus lines insurance carrier, specializing in property/casualty insurance for specialty risks that don’t meet the current appetite of other markets. The company writes E&S business in all 50 states and has an “A” (Excellent) rating by AM Best. Additionally, Prime is affiliated with a surplus lines broker, XINSURANCE, dba of Evolution Insurance Brokers LC.
1 U.S. Bureau of Labor Statistics, 2023 (www.bls.gov/oes/current/oes413021.htm)
2 AM Best, 2024 (tinyurl.com/28dtufzh)
3 PIA Northeast members can access the exportable lists in Connecticut, New Jersey and New York in the PIA QuickSource library: QS06016, QS29029 and QS31040, respectively. New Hampshire and Vermont do not have exportable lists.
4 S&P Global, 2024 (tinyurl.com/mr3wkmb8)
Let us help you build lasting relationships with companies, managing general agents, and general agents. The Appointment Access Program can connect you with quality MGAs and GAs looking to appoint, and our Agency-Company Appointment Program can connect you with carriers.
Struggling to find a specialty market? With PIA MarketBase, you don’t have to search blindly—or worse—turn away business. We can connect you with nearly 100 firms offering more than 2,100 specialty risk categories.
PIACT delivers the tools, knowledge producers need to succeed
The PIA Connecticut Convention—held at Foxwoods Resort Casino—was a smashing success. From March 20-21, 2025, more than 300 insurance professionals from from the Northeast gathered to network, learn and expand the capabilities of their businesses.
Highlights from the two-day convention included an address by PIA National President Ariel Rivera, MBA, CIC, CPIA, the presentation of the Company Person of the Year award, the PIACT and CTYIP change of administration, the sold-out trade show, insightful education seminars and the numerous opportunities for agents to develop new connections.
More photos from the event can be found in the 2025 PIA Connecticut Convention photo album: tinyurl.com/3jdcf8r3.
An address from PIA National’s president
The Networking Lunch featured an address from PIA National President Ariel Rivera, MBA, CIC, CPIA. In his speech, Rivera emphasized the unity between PIA National and its state-level counterpart, PIACT. He described the relationship between the National and Connecticut teams being “like family”: here’s to the continued success and cooperation between both organizations.
The Company Person of the Year award was presented to Joe Secondo of The Harford, for his commitment to the American agency system, and his dedication to fostering a sound working relationship between the company and its agents. Also during the event, the association announced the following presidential citations:
• Nate Shippee, in recognition of his dedicated service and leadership as vice president of PIACT, and for advancing the insurance industry.
PIACT Company Person of the Year Joe Secondo of The Hartford.
PIA National President Ariel Rivera
• Tom McKiernan, in recognition of a distinguished career dedicated to advancing the insurance industry and for championing the success of independent insurance agents.
• George Russell, in recognition of a distinguished career dedicated to advancing the insurance industry and for championing the success of independent insurance agents.
During the convention, agents had plenty of opportunities to network with their fellow insurance professionals, either making new friends or strengthening old bonds. Whether on the trade-show floor, at the lunch buffet or during the evening reception with the musical stylings of DJ Mike Nigretti, you can bet that some important relationships were made.
Speaking of the trade show, a diverse array of vendors flooded the convention floor, bringing with them new products and business solutions, with which savvy insurance professionals could experiment. Attendees browsed comfortably and felt satisfied with the great selections that were offered on the trade-show floor.
Invaluable education sessions
Insurance agents could earn needed continuing-education credits. This year, three courses were offered, for a total of six CE credits: Emerging Risks: Autonomous Vehicles, ShortTerm Rentals, Rideshares & Drones; The Intersection of AI and Insurance and Errors & Omissions; and An Agent’s Ethical and Legal Obligations^AZ^UN .
The first two sessions were taught by PIA Northeast Director of Government & Industry Affairs Bradford J. Lachut, Esq. In, Emerging Risks: Autonomous Vehicles, Short-Term Rentals, Rideshares & Drones, attendees explored how advancements in technology and evolving social behaviors are reshaping risk assessment in the insurance industry. The session addressed the complex liability issues posed by these emerging risks and discussed how to evaluate and manage them within the framework of current policy forms.
“Technology and social shifts have changed risk assessment in insurance,” said Lachut in his presentation. “Traditionally, a named insured is used to assign risk—but what happens when there’s no human behind the controls? Emerging technologies raise complex liability issues that must be addressed by insurance professionals.”
The next session Lachut taught was The Intersection of AI and Insurance, which focused on generative artificial intelligence and its role in the insurance industry. Participants gained a deeper understanding of generative AI, such as its
Scenes from the trade show
current capabilities. The seminar also highlighted practical ways agencies—regardless of size—can leverage AI tools to enhance operational efficiency, streamline workflows and unlock new opportunities for agency staff.
Lachut also reviewed some of its limitations. There is the risk AI may be biased from the data it trains from; it’s at the mercy of an ever-changing regulatory landscape; and is burdened technical difficulties posed in its implementation. Most importantly, AI in its current state can prompt errors-and-omissions exposures if not handled properly by insurance professionals, like if it were to offer the wrong policy to a consumer, or if it were to be subject to a cyberattack.
The final education session, Insurance and Errors & Omissions and An Agent’s Ethical and Legal Obligations, was presented by Christopher B. Weldon, Esq., partner, Winget, Spadafora & Schwartzberg LLP. In this three-hour course—which was approved for E&O loss-prevention credit by Allianz and Utica National—Weldon reviewed the ethical and legal responsibilities insurance agents in Connecticut must undertake. The course used real examples of E&O lawsuits and regulatory issues to convey the importance of insurance agents following regulatory guidelines.
These education sessions provided valuable lessons that insurance producers can apply in their daily operations. With new technologies and the important legal responsibilities producers must hold themselves to, these classes are as important as ever.
A change in administration
The PIACT and CTYIP boards of directors held their annual business meetings during the convention, at which their 2025-26 officers and directors were elected:
• Immediate Past President: Nicholas Ruickoldt, CISR, CPIA
CTYIP 2025-26 officers
• President: Justin Sloan
• President-elect: Robin Ricciardone
• Vice president: Jacklyn Meeker
• Treasurer: Kieran Buttrick
Your PIACT officers for 2025-26: (L-R) Kimberly Tompkins, Kevin McKiernan, Katie Bailey and Nicholas Ruickoldt. Not pictured: Jeffrey Krar.
Some of your CTYIP officers, directors: (L-R) Sean Walsh, Walker Russell, Matthew Higgins, Robyn Ricciardone, Jacklyn Meeker and Kieran Buttrick.
CTYIP officers and directors not pictured: Justin Sloan, Ryan Keating, Ryan Kelly, Jeremy Card and Ryan Vivenzio.
• Secretary: Ryan Keating
• Immediate Past President: Ryan Kelly
CTYIP 2025-26 board of directors
• Kieran Buttrick
• Jeremy Card, ARM-P, CSRM, CISR
• Matthew Higgins
• Ryan Keating
• Jacklyn Meeker
• Justin Sloan
• Robyn Ricciardone
• Walker Russell
• Ryan Vivenzio
• Sean Walsh
CTYIP Welcome Reception
CTYIP held its annual Welcome Reception—Let the Good Times Bowl—the night before the start of the convention. This event was held at the High Rollers Luxury Lanes & Sports Lounge at Foxwoods, and it featured over 70 participants in friendly competition for the highest score.
Thanking our sponsors
From PIA to the sponsors, exhibitors and advertisers who helped make Connecticut Convention possible this year: Thank you.
AFCO Direct
A.I.M. Mutual
AmWINS
The Andover Cos.
Arbella Insurance Group
Business Risk Partners
Central Insurance Cos.
Chubb
Glass America
Jencap Group
Liberty Mutual / Safeco
MAPFRE Insurance
NJM Insurance Group
NLC Insurance Cos.
Ohio Mutual Insurance Group
Omaha National
Plymouth Rock Assurance
Progressive Insurance
Quincy Mutual Group
Renaissance Alliance
Selective Insurance
SERVPRO
Travelers
Plans are already underway for next year’s convention. Watch your PIA publications for details.
McDonough is PIA Northeast’s writer/editor & content curator.
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JOHN CHAPIN President, Complete Selling
Grow a successful business with attitude and activity
After more than 37 years in sales, as the top sales representative in three industries—successfully growing my own businesses over the years, and watching and coaching thousands of other salespeople and business owners—I’ve learned what it takes to be successful in sales and business. If you’re a sales professional, you’re running your own business within a business. If you sell enough you stay in business, if you don’t, you don’t. That said, here’s what it takes to be successful in business.
Successfully growing a business takes two things: attitude and activity. Attitude includes confidence, conviction, commitment and perseverance. Activity includes your most important sales activities: prospecting, presenting and closing.
Those will require that you have a plan, and that you have the self-discipline to stick to the plan. Ultimately, they also require you to spend the right amount of time and money on those activities.
Speaking of time and money, you need to track both. The most important activities you spend time on during the day are the ones that bring money into the business. It isn’t working on your logo, driving to the post office, reading a book, watching a podcast, cleaning your desk or entering information into the computer. During business hours more than 90% of your time should be spent on activities that generate cash flow. As far as money is concerned, most of the money that comes in should be reinvested into the
business. Track this money to make sure it is well invested. Any money that gets invested in the business needs to return equal or greater value.
Next, you need a plan that includes how much business you need, how many people you need to talk to, and where to find those people. The fastest way to build business is by calling on people in person or on the phone.
Business is a contact sport, and it is all about relationships. To build relationships and connect with people, you need to be talking to them live, not sending emails. Business also is a numbers game, if you talk to enough people during the day, you will eventually run into someone who needs what you have, or someone who knows a person who needs what you have.
Need help with your staffing needs? Try PIA’s Agency Staffing Assistance Program
If you’re searching for the best candidates for your agency, PIA may be able to help.
Find the people who need you
Start with friends and family and get back in touch with people you’ve lost touch with over the years. Make sure these people know what you do and ask them for referrals. Second is your target market and where they hang out (e.g., social clubs and events, networking groups or online). Next, get out and network, go to events, volunteer, look for all the opportunities to meet new people. You need a system for bringing new prospects into your business. If you still don’t have enough business and prospects, you need to cold call. Yes, you’re going to have to step out of your comfort zone and face some fears. Discomfort and fear stop most people. If growing a business was easy, everyone would be doing it.
When you are talking to people, focus on what they want and their interests. Ask good questions and determine whether you are a match. You always do what’s best for the other person. Also, when you do talk, make sure it’s about what they are interested in, and how your product benefits them.
ASAP gives you access to plenty of helpful resources:
• It starts by going to the ASAP webpage. Just select your state and you’ll be able to access the program.
• From there, we offer a wide range of resources to suit your staffing needs. This includes contact information for testing and recruiting agencies, a link library for job sites, select QuickSource library documents, and more.
•This service is part of your membership! Access a wealth of curated information as a member of PIA, for no added cost.
You can access the program at: www.pia.org/IRC/asap
Ultimately, failure in business comes from what you fail to do. The bottom line is: If you absolutely had to build your business and make it successful, and there was no other option, you would. If you had to, you’d focus all your resources and make it happen. Now go out there and take massive action.
Chapin is a motivational sales speaker, coach and trainer. To have him speak at your next event, go to www.completeselling.com. He has over 37 years of sales experience as a No. 1 sales rep and he is the author of the 2010 sales book of the year: Sales Encyclopedia (Axiom Book Awards). Reach him at johnchapin@completeselling.com.
PIA TECHNICAL STAFF
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Declinations, engagement rings, surplus lines and more
Conn.: Nonadmitted carrier coverage change
Q. When a carrier is going to change the terms of coverage substantially (e.g., adding an exclusion), to my knowledge, it is required to provide 60 days’ notice to the insured by statute. Does this apply to a nonadmitted carrier?
A. Surplus lines is subject to the termination statutes of Section 38a-323:
No insurer shall refuse to renew any policy that is subject to the requirements of Sections 38a-663 to 38a-696, inclusive, unless such insurer or its agent sends, by registered or certified mail, or by mail evidenced by a certificate of mailing, or delivers to the named insured, at the address shown in the policy, at least 60 days’ advance notice of its intention not to renew … (f) (1) No surplus lines insurer shall be deemed eligible to write coverage for risks as provided in Sections 38a-741 to 38a-744, inclusive, and 38a-794, unless such surplus lines insurer complies with the requirements of this section.
For information on conditional renewals, see Bulletin PC42-04.—Bradford J. Lachut, Esq.
N.H.: Declinations
Q. Before placing a risk with a surplus lines company, Section 405:24 of the New Hampshire Insurance Law requires producers to satisfy the insurance commissioner that the producer cannot procure such insurance in an admitted company. How are producers expected to “satisfy the insurance commissioner” in the context of this statute?
A. PIANH posed this question to the New Hampshire Insurance Department and received the following response:
Before procuring coverage in the surplus lines market, three letters of refusal to write coverage from three standard/licensed companies, who would reasonably be expected to entertain such submissions, will normally constitute satisfactory evidence of compliance with the statute. It is not necessary, or required, for this evidence to be submitted to the department for approval. The information should, however, be retained by the surplus lines broker or producer.
So, if you received three letters of refusal to write coverage, you would satisfy New Hampshire’s Insurance Law.—Danielle Caswell, Esq.
Vt.: Who owns the engagement ring?
Q. Regarding engagement rings, who has an insurable interest in the ring, and how should it be insured?
A. We know that two conditions must be met for a property insurance policy to pay for a loss.
Condition 1. Insurable interest in the property is a necessary condition for payment under a contract of indemnity. You can make someone whole again only if that person has suffered a loss to the property. A loss will not result unless that person had an economic interest in the damaged or missing property. For example, New York state defines an insurable interest as “any lawful and substantial economic interest in the safety or preservation of property from loss, destruction, or pecuniary damage” [Insurance Law Section 3401].
On the other hand, Vermont has no statute defining insurable interest.
So, the question is: Who has an economic interest in the ring? The person who purchased the ring and the person who is in possession of it. They both have an economic interest in the preservation of the ring. If something happens to it, the giver will be compelled to replace it.
If the engagement is terminated, most jurisdictions recognize the conditional nature of engagement and, as a result, will decide in favor of returning the ring to the giver. In Vermont, 15 V.S.A. 1002 states:
Nothing in this chapter shall be construed to bar a right of action for the recovery of a chattel, the return of money or securities, or the value thereof at the time of the transfer, or the rescission of a deed to real property when the sole consideration for the transfer of the chattel, money, or securities or real property was a contemplated civil marriage which has not occurred.
When the engagement is terminated, the receiver of the ring becomes a bailee and has a duty to preserve the ring from loss to return it to the giver.
Condition 2. The second condition requires that the person having an insurable interest be designated as an insured under the policy. ISO eligibility rules for an inland marine jewelry floater permit naming both parties as named insureds as follows:
A policy may be issued for engagement rings, wedding rings, and guard rings in the name of the two individuals, as interest may appear, regardless of the individuals’ residence.
If for some reason it is not possible to get both names on the policy, I recommend that the giver apply for the insurance. This is because the giver purchased the ring, and typically this person has a right to recover it should the engagement be terminated.—Dan Corbin, CPCU, CLU, LUTC
Charging surplus lines fees in Massachusetts
Q. What is the law on the maximum surplus lines fee that can be charged in Massachusetts?
A. The former law in Massachusetts, which set this limit by statute was repealed; and now the commonwealth
allows “reasonable and customary” fees (see Bulletin 2013-09).
Many PIA members report that they see fees ranging from $50 to over $100. —Dan Corbin, CPCU, CLU, LUTC
Primary or excess?
Q. An employee of our commercial auto policyholder had an accident in his personal vehicle. Our policyholder has two policies through two different companies. Company A’s policy is rated based on Symbol 1— making any auto (including hired and non-owned) a covered auto. The second policy, written by Company B, provides liability coverage for nonowned and hired vehicles only. We would like the claim to be paid by Company B, because Company B’s coverage is more specific to the claim. But Company B says no, the loss should be split, one-half with Company A and one-half with Company B. How should this claim be apportioned?
A. The commercial automobile policy specifies that when both it and any other policy covers a loss on the same basis—either excess or primary—the
Wholesale Brokerage
commercial automobile policy will pay only its share. The share is determined by the proportion that the limits of the policy in question bears to any other policy or policies covering the loss on the same basis (primary or excess).
Thus, Company B’s analysis would be correct—but only if both companies provide the same limits. Both companies do provide coverage for this loss on an excess basis, and they should be able to reach an agreement to pay in proportion to their respective policy limits.
Your preference in the matter (that Company B pay the entire loss) is not likely to determine the outcome. The loss will be settled according to the policy provisions or, if the “other insurance” provisions of the two policies are in conflict, by some dispute-resolution mechanism. —Dan Corbin, CPCU, CLU, LUTC
Personal auto owned by trust
Q. When a trust owns a vehicle insured on a personal automobile policy written in the name of the grantor, how do you reconcile coverage as primary if the Other Insurance provision states coverage is excess for a vehicle not owned by the named insured?
A. The PP 13 03 Trust endorsement simply defines a vehicle titled to a trust as “owned” by the named insured.
Like leased vehicles, the most significant impact on coverage as a result of declaring the vehicle “owned” occurs when applying the Other Insurance provision in Part A–Liability Coverage, Part B–Medical Payments, and (in some states) Part C–Uninsured Motorists Coverage.
When the policy insures an owned vehicle, coverage is provided on a primary basis, and when the policy insures a nonowned vehicle, the coverage is excess.
For a more detailed discussion, PIA Northeast members can access Living trusts (QS90195) in the QuickSource library.—Dan Corbin, CPCU, CIC, LUTC
PIACT 2025 – 2026 Board of Directors
OFFICERS
President
Kevin P. McKiernan, CIC, CPIA Abercrombie, Burns, McKiernan & Co. Insurance Inc.
484 Post Road, Ste. A Darien, CT 06820-3651 (203) 655-7468 kmckiernan@abmck.com
