What should a surplus lines broker do if a client's risk changes and requires an updated policy?

A surplus lines broker has the responsibility to continuously assess the risks associated with the policies they manage for clients. If a client's risk changes, it is imperative for the broker to re-evaluate the policy to ensure it still aligns with the client's current needs and the risks being presented. This reassessment allows the broker to provide informed advice and obtain the appropriate coverage for the client.

Informing the client about the changes in risk is crucial as they rely on the broker's expertise to navigate their insurance needs. This communication ensures that the client is aware of potential gaps in coverage or the necessity for a different policy that better suits their current situation. It also emphasizes the broker's role as a trusted advisor, fostering a transparent relationship between the broker and the client.

In summary, reassessing the risk and communicating with the client about any implications or necessary actions is fundamental in maintaining effective insurance coverage and compliance with regulatory standards associated with surplus lines insurance.