What is a "specialty insurance company"?

A "specialty insurance company" specifically refers to an insurer that focuses on high-risk policies, which may not be well-represented in the standard insurance market. These companies typically cater to unique, unusual, or complex risks that require specialized underwriting expertise. For example, specialty insurers often provide coverage for fields such as aviation, ocean marine, or other niche markets where conventional insurance might hesitate due to the elevated risk involved.

In contrast, companies providing basic home and auto insurance primarily address common risks and are not considered specialty insurers. Similarly, firms that cover common insurance risks do not fit the definition of a specialty insurer as they deal with standard policies. Additionally, platforms designed for comparing insurance policies are technological tools rather than actual insurance providers and therefore do not fall within the definition of a specialty insurance company. Thus, the aspect of specialization in high-risk policies is what effectively distinguishes a specialty insurance company from others in the industry.