The excess and surplus lines market continues to offer new coverages, including insurance that protects against the breakdown of equipment. Increasingly, companies are using arrangements with specialty insurers to incorporate equipment breakdown coverage into their product offerings. This follows a trend among standard insurers who have made equipment breakdown a standard part of their commercial package policies.
Until recently, equipment breakdown was not available in the surplus lines market as it was in the standard markets. Surplus lines companies and wholesalers were placed at a competitive disadvantage as retail agents began to expect equipment breakdown to be included in their packages in an effective and efficient way. The retailer's customer often had few options from the surplus lines market for affordable equipment breakdown coverage, which pays for repairs, business interruption, and other related losses. By offering equipment breakdown and other specialty coverages, many surplus lines companies are now starting to broaden their product offerings in response to this need.
Filling a Coverage Gap
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