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What is a “Hard-To-Place Risk”?

One of the more ambiguous terms in the insurance lexicon is “Hard-To-Place Risk.”

The more this uncertain phrase is unpacked and understood, the better producers are positioned to identify and write such risks in their book of business.

To dig a little deeper.

Often disregarded or baffling, they offer agents and brokers an opportunity to increase revenue and satisfy their clients in need.

Individuals and businesses need insurance.

Every submission for insurance proposed to an insurance carrier is considered a risk with an inherent probability of damage, injury, liability, etc. A heightened possibility of loss or nontraditional features will make finding coverage with an insurance carrier a challenge.

“Hard-To-Place Risks” are submissions with an excessive chance of loss, unusual exposure and challenged by placement. In short, they are characterized by elevated or atypical liability.

Yet what are specific risk examples and how are they handled in the insurance marketplace?

Go to Part 2 of our series to find out!

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