What should brokers prioritize when placing coverage with surplus lines insurers?

When placing coverage with surplus lines insurers, brokers must prioritize the documentation of efforts to obtain coverage from admitted carriers. This requirement is critical because surplus lines insurance is intended to provide coverage when it is unavailable from licensed admitted insurers. Brokers need to demonstrate that they have made a genuine effort to find coverage within the admitted market before resorting to surplus lines.

Documenting these efforts is essential for compliance with regulatory standards and to protect both the broker and the client. It helps to establish that the surplus lines placement is necessary and justified, ensuring that clients are receiving the best possible options available in the marketplace. This documentation not only serves as proof of diligence but also fulfills legal obligations under state regulations governing surplus lines transactions. By prioritizing this documentation, brokers can help ensure that they are operating within the law while still striving to meet their clients' coverage needs.