What is typically required for a broker to place surplus lines coverage?

For a broker to successfully place surplus lines coverage, there is typically a requirement to demonstrate that they have made an effort to obtain coverage from admitted insurers. This is a crucial step because surplus lines insurance is designed for situations where coverage is not available through standard, licensed carriers. By showing that attempts were made to secure coverage from admitted insurers, the broker establishes the necessity for seeking surplus lines options.

This requirement helps ensure that surplus lines are utilized appropriately, as they are meant to address unique or high-risk situations where traditional insurance markets cannot provide a viable solution. The focus is on ensuring that surplus lines are a last resort, hence the emphasis on exhausting options with admitted insurers first.