What is the primary focus of surplus lines insurance?

The primary focus of surplus lines insurance is to provide coverage when standard markets cannot. This type of insurance is designed to fill the gaps in the traditional insurance market, making it essential for risks that are considered unusual or too high for standard insurers. Surplus lines insurers specialize in unique or challenging risks, which means they often underwrite situations that standard insurers may find too risky or may have excluded from their policies.

For instance, businesses that face unique liabilities, emerging risks, or those in industries that are considered too high-risk for conventional coverage may turn to surplus lines providers. This flexibility allows for customized policies that can cater specifically to the needs of the insured, providing essential coverage where it might otherwise be unavailable. This distinguishes surplus lines from other types of insurance that typically focus on standard risks or more common coverage areas.