One insurer’s no is one answer from one insurer. We keep looking for coverage on your behalf and put the differences in writing before you decide. Hard to place risks are one area of our practice.
If a standard insurer says no, your policy may be placed this way, and it works a little differently. Some hard to place risks are insured by surplus lines carriers. These carriers are not licensed by the state as admitted insurers. Their policies can cost more, cover less or differently, and follow different cancellation and nonrenewal notice rules. They are generally not covered by the state insurance guaranty fund if the carrier fails. Surplus lines coverage is placed through a licensed surplus lines broker. We explain the differences to you in writing before you decide.
What Does Hard to Place Mean?
What hard to place means.
A hard to place risk is one that the standard market declines or will not renew. The term describes the risk and is not a promise of any outcome.
What happens to your account.
We look for coverage for your account on your behalf. When the standard market declines it, we work with licensed surplus lines brokers to find specialty coverage.
What cannot be promised.
We cannot promise that a placement will be made. We can tell you where your account stands.
Common Reasons an Insurer Says No
Issuing Insurance CompanyCommercial claims, loss history unit
RUN DATE 10/31/2026 PAGE 1 OF 1
Loss Run ReportCommercial general liability. Valued as of 10/31/2026
Named insuredSAMPLE KITCHEN LLC 88 SAMPLE STREET ANYTOWN ST 00000
Experience period10/01/2021 TO 10/01/2026 5 POLICY YEARS
Requested byAGENCY OF RECORD PRODUCER CODE ••118
Claim noDate of lossStatusPaidReserveIncurredClaimant / description
POLICY GL ••••5520 PERIOD 10/01/2025 TO 10/01/2026
Paid amounts include loss and expense. Reserves are estimates and may change. Incurred is paid plus reserve. This report reflects information on file on the valuation date.
LR CGL 10 26Confidential. Released to the named insured and its producer of record.Page 1 of 1
Issuing Insurance CompanyCommercial claims, loss history unit
RUN DATE 10/31/2026 PAGE 1 OF 1
Loss Run ReportCommercial general liability. Valued as of 10/31/2026
Named insuredSAMPLE KITCHEN LLC 88 SAMPLE STREET ANYTOWN ST 00000
Experience period10/01/2021 TO 10/01/2026 5 POLICY YEARS
Requested byAGENCY OF RECORD PRODUCER CODE ••118
Claim noDate of lossStatusPaidReserveIncurredClaimant / description
POLICY GL ••••5520 PERIOD 10/01/2025 TO 10/01/2026
Paid amounts include loss and expense. Reserves are estimates and may change. Incurred is paid plus reserve. This report reflects information on file on the valuation date.
LR CGL 10 26Confidential. Released to the named insured and its producer of record.Page 1 of 1
What This Means for YouThis is your claims history, and every new insurer reads it first. Your open claim’s reserve is an estimate, and it counts until the claim closes.Source: National Association of Insurance Commissioners, on loss frequency
The insurer is writing less of your kind of risk.
An insurer may decide to drop a line of insurance or to write fewer policies where you live. One insurer’s decision does not mean another will not offer coverage.
Your claim history.
For car insurance, your claim history can affect whether your insurer renews your policy. Send your loss runs with your request, so the next insurer sees the full picture.
The condition of the property.
You may get a chance to keep coverage by showing what you have done to lower the risk, such as replacing a roof.
How the property or business is used.
Failing to tell the insurer about a business run from the home could lead to a cancelled policy. Describe the true use when you ask for a quote.
How Is Surplus Lines Coverage Different?
Why it exists.
The surplus lines market exists to provide coverage not available through licensed insurers in the standard market.
What can differ.
The cost, the coverage, the cancellation and nonrenewal notice rules, and the guaranty fund protection can each differ from a standard policy. We explain every difference to you in writing before you decide.
A state plan of last resort.
Many states offer FAIR plan policies for high risk homes. They offer limited coverage and are often more expensive than a standard policy. The state facts below name one state’s plan.
Accounts Like Yours
The accounts below are examples and not a complete list.
Connecticut defines a surplus lines broker as one who places coverage with a non admitted carrier after the admitted market is exhausted.
A Connecticut resident surplus lines broker must already hold a property and casualty producer license and pass the surplus lines exam.
Public Act 26-69 eliminated Connecticut’s surplus lines diligent effort requirement, effective October 1, 2026.
If you cannot find coverage in the private market, the Connecticut Property Insurance Placement Facility, also known as the CT FAIR Plan, serves as the insurer of last resort.
The term describes a risk that the standard market declines or will not renew.
Can my coverage come through the surplus lines market?
It can, where no standard insurer offers it. We reach the surplus lines market through licensed surplus lines brokers.
What should I send to get started?
The letter that said no, the date you need coverage to start, and your loss runs if you have them.
How is surplus lines coverage different from a standard policy?
Surplus lines coverage can cost more, can cover less or differently, and follows different cancellation and nonrenewal notice rules. It is generally not covered by the state insurance guaranty fund if the carrier fails. We explain the differences to you in writing before you decide.
Can anyone promise me coverage?
No. Hard to place is a description of a risk and not a promise of coverage.
I received a nonrenewal notice. Is this the right page?
