What is the primary duty of a surplus lines broker?

The primary duty of a surplus lines broker is to assess risks that may be excluded by standard insurers. Surplus lines brokers play a critical role in the insurance market, particularly for specialized or unconventional risks that traditional insurance companies may not be willing to underwrite. By understanding the complexities of these risks, surplus lines brokers are able to find insurance solutions that will provide coverage where standard policies fall short.

This responsibility includes evaluating the unique characteristics of the risk, gathering essential information, and ultimately connecting clients with insurers that are willing to take on these non-standard risks. This capability is vital for businesses and individuals that operate in niche markets or have unique exposures that are not adequately covered by conventional insurance policies.

In contrast, while selling policies, negotiating claims, or focusing solely on commercial insurance might be part of a broker’s activities, these do not capture the essential role of identifying and facilitating coverage for high-risk or unconventional situations that define the work of surplus lines brokers.