What actions can a surplus lines broker take if the insurer denies coverage?

A surplus lines broker plays a crucial role in providing insurance solutions that may not be available through standard markets. When an insurer denies coverage, the appropriate action for the broker is to review the policy details and seek alternative coverage options. This response is essential because a denial does not necessarily mean that the risk is uninsurable or that there are no other viable options available.

By reviewing the policy, the broker can understand the reasons behind the denial and determine if it was due to specific exclusions, underwriting guidelines, or other factors. This analysis allows the broker to explore other insurers that might be willing to cover the risk under different terms or conditions. The broker's goal is to ensure the client's needs are met, which often involves finding solutions in the surplus lines market where more flexibility may exist.

Taking the steps outlined in this correct answer exemplifies the proactive approach that brokers should take in advocating for their clients, ensuring they can provide the necessary coverage even in challenging situations.