What is the role of a surplus lines intermediary?

A surplus lines intermediary plays a crucial role in the insurance industry by connecting clients with coverage options that are not available from admitted insurers, which are those insurers licensed and regulated in a particular state. When traditional insurance markets cannot meet the needs of clients—often due to unique or high-risk situations—surplus lines intermediaries engage with non-admitted insurers that can provide specialized policies. These professionals ensure that clients can access necessary coverage and navigate the complexities of the surplus lines market, which is essential in cases where conventional insurance options fall short.

The functions of surplus lines intermediaries include assessing client requirements, identifying carriers willing to underwrite those risks, and facilitating the placement of coverage, all of which specifically highlight their role in bridging the gap between clients and non-admitted insurers. This role is particularly important in scenarios involving unique risks, large liabilities, or niche markets where admitted carriers may not be willing or able to provide insurance solutions.