What should a surplus lines broker do if a claim arises from a non-admitted insurer?

A surplus lines broker must ensure the client is aware of the claim process and any limitations associated with coverage from a non-admitted insurer. This is crucial because non-admitted insurers operate outside the traditional regulatory framework, which can lead to differences in claims handling processes and potential limitations in coverage compared to admitted carriers. By informing the client, the broker helps to manage expectations and ensures that the client understands the nuances of their policy, including any potential challenges in the claims process. This proactive communication is essential in fostering trust and clarity in the client-broker relationship, particularly in the surplus lines market where coverage is often more specialized and complex.