Special Insurance Policies

Definition - What does Special Insurance Policies mean?

Special insurance policies (also known as specialty insurance policies and niche insurance policies) are those that cater to unusual risks, including risks associated with niche markets or products. It is underwritten by insurance companies that specialize in providing it and the premium is likely to be higher than those of a regular insurance policy.

Insuranceopedia explains Special Insurance Policies

Special insurance policies are often referred to as specialty insurance policies when they are applied to unusual risks. For instance, a sommelier might insure their nose because the proper functioning of the olfactory organ is required to assess and differentiate wines and, hence, participate in that profession. Likewise, a male pornographic actor might insure their genitalia because, although no one wants theirs injured, his is crucial to remaining profitable in the industry.

Even when the risk is not unusual, special insurance policies can still apply to low-market or rarefied business, in which case it is often called a niche insurance policy. Insuring a pet dog or cat is common, but special insurance is required, for example, for a zoo owner who wants to insure a lion, a cheetah, or an orangutan.

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