What is the role of a Surplus Lines Broker?

The role of a Surplus Lines Broker primarily involves accepting surplus lines business from licensed producers. Surplus lines insurance refers to coverage that is not available through licensed admitted carriers but is necessary to address unique or high-risk situations often excluded from traditional insurance policies.

Surplus Lines Brokers are crucial in this process because they have the authority to procure insurance from non-admitted insurers, which are not regulated by the state and can offer more specialized policies. This is particularly useful in scenarios where standard insurance coverage doesn’t meet the needs of the insured due to factors such as high risk or unique underwriting criteria.

By acting as intermediaries, Surplus Lines Brokers ensure that licensed producers can access a broader array of options for their clients, thereby facilitating the provision of necessary coverage that would otherwise be unavailable in the conventional market.