What is a primary duty of a surplus lines broker?

A surplus lines broker plays a crucial role in the insurance industry, particularly in addressing unique and challenging insurance needs that are not met by standard insurance carriers. The primary duty of a surplus lines broker is to find insurance coverage for hard-to-place risks. This involves working with non-admitted insurers who are not licensed in the state but can provide coverage for specialized, high-risk, or unique situations that traditional insurance companies may be unwilling or unable to insure due to factors like elevated risk levels, limited market capacity, or specialized coverage requirements.

By bridging the gap between these non-admitted insurers and clients seeking coverage for hard-to-place risks, surplus lines brokers facilitate access to options that may otherwise be unavailable in the standard market. This expertise is critical for clients who require tailored solutions to fit their specific insurance needs, which highlights the importance of the surplus lines broker's role in the broader insurance marketplace.