Additional considerations:
1) the financial rating and size of the insurer – some E&S carriers are not that big, and that can become an issue for stability if the financial strength rating is marginal
2) the length of time the insurer has been in operation, and particularly, how long the insurer has been writing the particular coverage line under consideration; do they have a meaningful history in that space?
3) policy form content, terms and conditions, etc. – make sure you READ THE POLICY that’s being offered BEFORE YOU BIND IT
4) the lack of state guarantee fund backing is not necessarily an issue in the context of larger commercial placements, as the amount the guarantee funds will pay is typically limited by statute or regulation to quite small amounts, more suited to consumer protection. But this emphasizes the need to pay attention to ratings, per #1 above.
Additional considerations:
1) the financial rating and size of the insurer – some E&S carriers are not that big, and that can become an issue for stability if the financial strength rating is marginal
2) the length of time the insurer has been in operation, and particularly, how long the insurer has been writing the particular coverage line under consideration; do they have a meaningful history in that space?
3) policy form content, terms and conditions, etc. – make sure you READ THE POLICY that’s being offered BEFORE YOU BIND IT
4) the lack of state guarantee fund backing is not necessarily an issue in the context of larger commercial placements, as the amount the guarantee funds will pay is typically limited by statute or regulation to quite small amounts, more suited to consumer protection. But this emphasizes the need to pay attention to ratings, per #1 above.