When most people think of Excess & Surplus (E&S) insurance, they picture extreme, high-risk businesses or companies that are clearly outside the box. In reality, many everyday and growing businesses quietly fall into E&S—often without realizing it until standard markets say no.

For agents, recognizing these risks early can save time, reduce declinations, and create better outcomes for customers.
Below are five surprising types of businesses that frequently require E&S coverage, why they land there, and how to get started with the E&S process using LocalEdge.

1. Pop-Up Events & Temporary Experiences
Why it’s surprising:
Pop-up shops, seasonal markets, brand activations, and temporary experiences are often viewed as low risk because they operate for a short time, sometimes just a weekend. Business owners (and even agents) may assume limited duration means limited exposure. In reality, these events often involve unfamiliar venues, dense foot traffic, alcohol service, or live entertainment, concentrating risk into a very small window.

Why they often need E&S:
• No long-term operating history
• Short coverage periods
• Large crowds or public attendance
• Alcohol service, live entertainment, or unique venues (warehouses, rooftops, outdoor spaces)

Common E&S coverages:
• Special event general liability
• Liquor liability
• Short-term or non-owned property coverage

2. Artisan Manufacturers & Small-Batch Producers
(Candles, cosmetics, supplements, food products, pet treats, handmade goods)
Why it’s surprising:
These businesses often start as passion projects—sometimes run out of a home kitchen, garage, or shared workspace. Because they are handmade, locally produced, or sold in small quantities, they are often perceived as safer than large manufacturers. Once products are sold to the public, especially online or across state lines, the product liability exposure can grow quickly and move beyond standard market comfort.

Why they often need E&S:
• Product liability exposure
• Limited or informal quality control processes
• Nationwide or online sales through marketplaces
• Ingredients or formulations that standard carriers restrict

Common E&S coverages:
• Product liability
• Product recall
• Excess liability

3. Mixed-Use & Non-Traditional Properties
(Live/workspaces, short-term rentals, converted buildings)
Why it’s surprising:
From the outside, these properties may look like standard buildings. Owners often assume a traditional property policy applies because the structure itself hasn’t changed. What’s easy to overlook is how combining residential, commercial, and short-term use under one roof creates underwriting complexity that many standard carriers are unwilling to accept.

Why they often need E&S:
• Multiple occupancies under one roof
• Short-term or transient tenants
• Renovations or non-conforming use
• Partial vacancy or unique construction features

Common E&S coverages:
• Property
• Premises liability
• Excess or umbrella coverage

4. Contractors with Specialty or High-Hazard Operations
(Roofing, welding, excavation, demolition, habitational work)
Why it’s surprising:
Many contractors begin in standard markets and stay there for years. From the owner’s perspective, nothing may feel different—until a renewal comes back restricted, non-renewed, or declined. Small changes in scope, project size, or job type can quietly shift a contractor into E&S territory without much warning.

Why they often need E&S:
• Height, heat, or heavy equipment exposure
• Expansion into higher-risk operations
• Prior losses, cancellations, or non-renewals
• Work in restricted classes or geographic areas

Common E&S coverages:
• General liability
• Excess liability
• Contractors pollution liability (when applicable)

5. Hospitality Businesses with “Extras”
(Bars with live music, late-night venues, niche concepts)
Why it’s surprising:
Hospitality businesses often look straightforward at first glance, especially when categorized simply as restaurants or bars. What shifts them into E&S is how quickly added features—such as live music, extended hours, dancing, or special events—change the risk profile in ways standard carriers may not accommodate.

Why they often need E&S:
• Live entertainment or dancing
• Late-night hours
• Alcohol-driven revenue
• Security concerns or prior claims

Common E&S coverages:
• General liability
• Liquor liability
• Assault & battery coverage
• Excess liability

Red Flags That Signal an E&S Placement
If you see one or more of these, E&S may be the right path:
• Declined by two or more standard carriers
• New venture or new ownership
• Non-standard operations or locations
• Prior losses, cancellations, or non-renewals
Being proactive can save valuable time and frustration for both agents and their customers.

How to Get Started with the E&S Process
When submitting an E&S risk, preparation matters. Underwriters value transparency and detail.

Start with:
• Clear description of operations
• Years in business and ownership background
• Prior carrier information and loss runs
• Revenue, payroll, and locations
• Any unique exposures upfront
Pro tip: Sharing the full story early often leads to faster turnaround and more competitive outcomes.

Why agents partner with LocalEdge for E&S:
When standard markets say no, LocalEdge helps agents find the yes.
• Access to specialty and surplus lines markets
• Help determining if a risk belongs in E&S
• Submission guidance that saves time
• Faster triage on hard-to-place accounts
Not sure where a risk fits? LocalEdge can help you evaluate, position, and submit with confidence. Remember, every risk is unique. Coverage availability and placement depend on underwriting review, loss history, and market appetite.

Ready to place a hard-to-write risk?
Connect with our brokers to get started on your next E&S submission.
Call us at 800-444-1744, Option 1, then 3.
Email at [email protected]