Over the past several years, the excess and surplus (E&S) market has taken on a larger role for independent insurance agencies. A sustained hard market has made it essential for many agents to find coverage outside of standard carriers. Now, as conditions begin to ease in some lines, agents may see a little more flexibility from admitted markets, but E&S remains an important tool in serving clients.
For agency owners, the real question is no longer whether to use E&S. It is how to do it efficiently, without frustration for the client or unnecessary rework for the agency.
Why E&S Matters
E&S business has become far more mainstream than it once was. For many classes of business, it may be the only realistic option. Contractors with specialized operations, new ventures without a track record, or risks in catastrophe-prone areas are just a few examples. E&S can also provide flexibility on terms, coverage features, and pricing that admitted carriers may not be able to offer.
Agencies that embrace E&S as part of their regular workflow, not just a fallback when the standard markets decline, put themselves in a stronger position. They can write and retain accounts across a wider range of industries, protecting revenue that might otherwise walk out the door.
The Common Challenges
Even though E&S is more accessible than ever, it often creates additional complexity. The obstacles most agencies encounter fall into a few categories:
- Inconsistent appetite. Each E&S carrier, MGA, or wholesaler has its own guidelines. What looks like a fit with one may be declined outright by another. Without clear direction, an account can bounce around, creating delays.
- Submission quality. Underwriters expect detailed, accurate applications with supporting information up front. An incomplete submission slows the process, frustrates the underwriter, and can damage the agency’s reputation.
- Multiple touchpoints. Unlike admitted markets that often offer straight-through quoting, E&S placements may involve manual submissions, phone calls, and back-and-forth communication with several parties. If the process isn’t organized, the agency risks doing the same work multiple times.
- Client education. For business owners, the term “E&S” may raise questions or concerns. They may assume it means less protection or higher risk. Agents need to be prepared to explain why E&S is necessary, what the benefits are, and how the client will be supported going forward.
Making It Easier
There’s no way to remove all the complexity from E&S, but agencies can take practical steps to simplify the process.
- Leverage relationships. Many agencies find success working with trusted wholesalers or broker partners who know the markets well. Networks can also play a role by broadening access and providing guidance on carriers that specialize in specific niches. Having a partner who understands appetite saves time and builds confidence.
- Standardize submissions. Agencies that create their own checklists and templates for E&S placements see fewer delays. A standardized approach ensures that staff know exactly what information to gather, and underwriters receive complete files from the start.
- Set expectations with clients. Transparency is key. Explaining early in the process why an account may need to be placed in E&S, whether due to loss history, class of business, or geography, helps clients understand that it is about finding the right coverage, not about settling for less. Agents who prepare clients for differences in pricing, coverage terms, or renewal processes avoid surprises later.
- Train the team. For many CSRs and account managers, E&S isn’t a daily focus. Taking time to walk through forms, common underwriting questions, and how to frame conversations with clients ensures that staff can handle these placements with confidence. Even a short internal guide can make a difference.
E&S as Part of the Toolkit
Market conditions will continue to shift, but E&S is here to stay. In fact, for some agencies, it has become a consistent and profitable part of their book. The key is to treat it not as a burden, but as another way to deliver solutions for clients.
Agencies that invest in building relationships, using technology, and putting internal processes in place are the ones that will thrive. E&S business doesn’t need to be complicated or frustrating. It can be an efficient, valuable extension of the agency’s service capabilities.
By approaching E&S with the same professionalism and intentionality as standard placements, agencies can keep more business in-house, strengthen client relationships, and create opportunities for growth.