As the name implies, the specialty insurance definition is straightforward: coverage for something unique. Policies offered under the title can cover anything from an original art piece to a specific field of work. It includes items or services not included in general policies.
There are insurance companies solely offering this type of coverage, which allows them to have a better grasp on specifics involved. Firms with specialization can have expertise in underwriting complex risks. A medical specialty insurance company, for example, will know which types of claims are most likely to be filed. Thus, they can offer coverage for those exact legal issues.
The firms usually know more about their exclusive customer base and can amend policies to fit specific needs. That distinctive service can mean lower premiums than an all-inclusive, general policy might offer, and actually include more coverage than you would have otherwise.
When considering specialty insurance, as with any coverage, carefully read the policies offered and get a clear understanding of any exemptions. Check that you are not getting redundant coverage, which will mean unnecessary costs. If it seems too pricey, consider paying a higher deductible, which can lower the premium.
The specialty insurance definition clearly denotes the distinct service it provides. Having unique coverage for line of work can mean you will be protected where and when you need it most.