In terms of underwriting, what does a surplus lines broker primarily assess?

A surplus lines broker primarily focuses on assessing unique risks that are not typically covered by standard insurers. This role requires an in-depth understanding of unconventional and specialized insurance needs that arise in various industries or circumstances. Standard insurance carriers have strict underwriting guidelines and often exclude certain high-risk scenarios or specialized coverages, which is where surplus lines brokers come into play. They facilitate access to insurance markets that can provide coverage for these unique risks, ensuring that clients receive the protection they require despite the exclusion from the standard market.

While assessing the financial history of clients and the marketing strategies of insurers can be relevant to the overall insurance process, they do not encapsulate the primary function of a surplus lines broker. The credibility of client feedback may also be considered in a broader sense, but it does not specifically address the central responsibility of identifying and insuring atypical risks.