What is Specialty Insurance? A Definition
For those who don’t speak the specialized language of underwriting, understanding terms of art can be difficult, as can finding plain-language explanations for them. One key concept every business client needs to understand though, is the basic specialty insurance definition.
What It Is
Specialty insurance refers to a broad class of products that are tailored to suit the needs of very specific clients or professions. It is basically the opposite of general insurance, which is the broad class of products that can be serviced fairly well by policies with a menu of basic parameters, regardless of one’s individual position in relationship to the insurance. For example, auto insurance. While there are some large companies that offer both general and specialty policies, the tendency for most insurance carriers is to work in one sphere or the other.
Examples of Specialty Insurance
To help round out your specialty insurance definition, it’s important to have a few examples on hand, and to compare and contrast them. Both kinds of policies apply to businesses in the health care industry, for example. Where basic property and workplace liability coverage would be considered a form of general insurance, these other forms of coverage would be considered specialty policies:
- Visiting Nurses’ Association coverage
- Coverage for home healthcare providers
- Coverage for medical staffing firms
Basically, when your policy needs special terms to fit your organization’s risk profile and professional requirements, that is when you enter the realm of specialty insurance.