Who acts as an intermediary in obtaining surplus lines insurance?

A surplus lines broker plays a critical role as the intermediary in obtaining surplus lines insurance. These brokers are specialized individuals or firms that are licensed to place insurance coverage with non-admitted insurers—insurance companies that are not licensed to operate in a particular state but are legally allowed to provide coverage in that state for certain risks.

One key function of a surplus lines broker is to identify coverage options for unique or high-risk situations that standard insurance companies may not cover. This can include specialized industries, atypical risks, or high-value properties. The broker understands the market and has access to multiple non-admitted carriers that offer surplus lines insurance, which allows them to find the best fit for their clients' needs.

The role of the surplus lines broker is essential in the insurance marketplace, especially for risks that require specialized knowledge and access to providers that are not typically available through regular agents or brokers. Thus, they serve as a crucial link between the insured and the insurance markets that can provide the necessary coverage.