How is 'person' defined in the context of surplus lines insurance?

In the context of surplus lines insurance, 'person' is defined as encompassing both natural persons and business entities. This broad definition is essential because surplus lines insurance often involves complex risks that can be associated with both individuals (natural persons) and various forms of businesses (business entities).

Recognizing that a 'person' can be a business entity is crucial because surplus lines insurance typically provides coverage for risks that standard insurance cannot accommodate, and these risks often relate to businesses, such as LLCs, corporations, or partnerships. Thus, including both natural persons and business entities in the definition allows for a comprehensive approach to various insurance needs in the surplus lines market.

This understanding supports the functionality of surplus lines insurance in addressing a wider array of coverage scenarios that may arise from both individuals and businesses, ensuring that all types of insured parties have access to necessary coverages in situations where conventional insurance policies may fall short.