Special Insurance Policies
What Does Special Insurance Policies Mean?
Special insurance policies also referred to as specialty or niche insurance policies, are designed to address unique or unconventional risks, often related to specific markets or products. These policies are typically underwritten by insurers specializing in such coverage and usually come with higher premiums compared to standard insurance policies.
Insuranceopedia Explains Special Insurance Policies
Special insurance policies, often referred to as specialty insurance, are tailored to cover unique or unusual risks. For example, a sommelier might insure their sense of smell, as their ability to evaluate and differentiate wines is critical to their profession. Similarly, a male adult film actor might insure their genitalia, as it is essential to their livelihood.
Special insurance policies can also apply to low-market or rarefied businesses, in which case they are often called niche insurance policies. While insuring a pet dog or cat is common, a zoo owner looking to insure exotic animals like lions, cheetahs, or orangutans would require such specialized coverage.
