What does "carrier placement" refer to in surplus lines?

"Carrier placement" in the context of surplus lines refers specifically to the process of selecting an appropriate non-admitted insurer for a particular risk. Surplus lines insurance is utilized for risks that are not covered by standard or admitted insurers, often because the risk is deemed too high or unusual. In this context, finding the right non-admitted carrier that is willing and able to underwrite a specific risk is crucial. This involves thoroughly assessing the insurer's capacity, expertise, and willingness to provide coverage for the unique characteristics of the risk in question.

Utilizing a non-admitted carrier provides the necessary flexibility and creativity needed to tailor coverage solutions that meet the client’s needs which are not available in the standard market. This selection process is essential for ensuring that the client's risk is adequately insured in a responsible and effective manner.