Why might a broker choose to work with a surplus lines insurer?

A broker might choose to work with a surplus lines insurer primarily to find coverage for risks that are not adequately covered by standard insurance policies. Surplus lines insurers specialize in providing coverage for unique, high-risk, or unusual situations that traditional insurers might either exclude or be unable to underwrite due to the nature of the risk involved. These risks could include non-standard properties, specialized industries, or unique liability exposures.

Surplus lines can cover a wider range of risks because they operate outside of the standard regulatory requirements imposed on admitted insurers. This flexibility allows brokers to match clients with appropriate insurance solutions when traditional markets cannot accommodate their needs. Therefore, the primary motivation for a broker to engage with surplus lines is to provide their clients with access to these specialized coverages that are essential for managing their risks effectively.