Why might a buyer seek surplus lines insurance?

A buyer may seek surplus lines insurance because their risk profile is considered too high or unusual for standard insurers to underwrite. Surplus lines insurance is specifically designed to cover unique or complex risks that do not fit the criteria of traditional insurance markets. These risks may include specialized industries, unique property types, or instances where the insured has a history of high claims that standard insurers find unacceptable.

Surplus lines insurers are willing to take on these unconventional risks, which allows buyers to obtain coverage that they otherwise could not secure in the standard market. This specialty coverage enables businesses or individuals to protect themselves against specific exposures that require tailored underwriting solutions.

In contrast, factors such as commonly accepted risks, having too many existing policies, or simply seeking the cheapest premium do not adequately justify the need for surplus lines insurance, as these scenarios typically align more closely with the offerings available through the standard insurance market.