There are two general qualifiers for individuals who purchase an excess and surplus disability insurance policy. The first is often a circumstance of underinsurance. The most common example of underinsurance is when the US disability insurance markets cannot provide a sufficient amount of coverage an individual is looking to purchase, therefore they require a supplemental policy (often referred to as an “excess” or “surplus” lines policy) to enhance a domestic disability plan with inadequate benefits. Highly compensated executives and professionals earning in excess of $500,000 annually represent a significant segment of this class.
The second is when a void exists in the US disability insurance markets and the coverage an individual is seeking is simply unavailable. This class is comprised of mainly professional athletes (NFL, MLB, NBA, NHL) and entertainers (actors, actresses, musicians, artists, producers, writers, etc.).
Click here to download an article on how to utilize Lloyd's of London as a resource