Every business currently sitting on a FAIR Plan commercial policy is, by definition, a business that could not secure standard market coverage at the time it applied. The FAIR Plan’s own coverage is also narrower than a typical admitted commercial policy: by statute it covers only fire, lightning, internal explosion and smoke damage, meaning a FAIR Plan client generally carries no liability, business interruption, theft, water damage, or wind and hail protection unless they separately purchase a difference-in-conditions policy to wrap around it. Farmers’ filing, alongside similar moves from Zurich US and Travelers under the same strategy, is effectively a signal that some of those accounts may now qualify for admitted market coverage with meaningfully broader terms than a bare FAIR Plan policy provides on its own.
