Which of the following risks is usually not covered by standard insurance policies but might be by surplus lines?

Surplus lines insurance is specifically designed to cover risks that are often excluded from standard insurance policies. Terrorism coverage is a prime example of this. While standard policies may provide some level of coverage for certain risks, events specifically designated as terrorist acts generally fall outside the scope of these policies due to their unpredictable and catastrophic nature.

As a result, many insurers choose not to offer coverage for terrorism, leading businesses and property owners to seek surplus lines coverage, which can be more flexible and tailored to address such unique and high-risk situations.

Other risks like fire damage, flood damage, and earthquake coverage might be addressed within standard insurance policies or can be added as endorsements or riders, depending on the insurer. Therefore, terrorism stands out as a risk that typically requires surplus lines due to its specific exclusions in standard offerings.