What might influence a policyholder's decision to seek surplus lines coverage?

A policyholder's decision to seek surplus lines coverage is heavily influenced by the availability of insurance in the standard market. Surplus lines insurance is designed for situations where coverage is either not available or insufficient in the admitted market. This can occur due to unique risks that don't fit the standard underwriting criteria or because specific types of coverage are not offered by traditional insurers.

In circumstances where potential policyholders find that the standard market cannot provide suitable coverage for their needs, they turn to surplus lines brokers, who can access non-admitted markets. This allows them to obtain the necessary protection even when traditional options are limited.

The other factors listed, such as income level, age of the policyholder, and size of the brokerage firm, do not directly dictate the necessity or requirement for surplus lines coverage. While these factors may influence a policyholder's insurance decisions or preferences, they are not the primary reason for seeking surplus lines, which is inherently tied to the lack of standard market options.