Surplus lines insurance — also referred to as Excess and Surplus lines or the non-admitted market — has been in existence since the early 1800s. It is a segment of the insurance market that provides coverage for the unique, unusual, or high-hazard account, be it commercial or personal lines. The most recognized carrier providing surplus lines coverage in Florida is Underwriters at Lloyd's, although there are many other E&S carriers doing business here today.

The surplus lines market acts as a complement to standard insurance carriers licensed by the Florida Office of Insurance Regulation (OIR). It is not a market of last resort such as the auto or workers' compensation assigned risk plans. E&S carriers provide a much needed outlet for insurance buyers who present a more challenging type of risk to the insurance market. They are willing to underwrite and accept difficult risks that standard carriers will not consider. As entrepreneurs, they do this voluntarily and look to produce an underwriting profit.

One of the unique characteristics of surplus lines carriers is they are not required to file policy forms or rates with the OIR. This is often referred to as the “freedom of rate and form.” They are also exempt from other regulations imposed on admitted carriers. These freedoms and exemptions give surplus line companies the flexibility to design and price their product according to the risk being underwritten. Of equal importance, it allows them to react immediately to the needs of consumers for coverage or capacity when market conditions change, regardless of the reason, including the occurrence of a catastrophe or a calamity.