Can individuals obtain surplus lines insurance directly?

Surplus lines insurance is specialized coverage that is not readily available through standard insurance markets. In Pennsylvania, as well as in other jurisdictions, individuals cannot obtain these types of insurance directly. Instead, they must work through licensed surplus lines brokers who are specifically authorized to place these unique risks with non-admitted insurance carriers.

This requirement exists because surplus lines brokers have the expertise and knowledge needed to evaluate unconventional risks and to navigate the complexities of the surplus lines market. They ensure that the coverage is appropriate for the individual’s needs and compliant with state regulations. This system protects both the insured individuals and the integrity of the insurance market, as only qualified brokers are allowed to facilitate these transactions.

Obtaining surplus lines insurance directly could pose significant risks, including inadequate coverage or regulatory violations, which is why the process is structured to go through a licensed broker.