The coverage placed by brokers is typically limited to insurance that is what?

The coverage placed by brokers is typically limited to insurance that is difficult to place or unavailable from admitted insurers. This reflects the primary role of surplus lines insurance, which is designed to provide coverage for risks that standard insurance carriers—those that are admitted and regulated by the state's insurance department—are unwilling or unable to insure.

Admitted insurers must comply with strict regulatory requirements, which limit the types of risks they can underwrite. When a business or individual has a unique or high-risk situation that does not meet the criteria for coverage from these insurers, brokers turn to surplus lines carriers. These carriers have more flexibility and can take on risks that traditional insurers might reject.

In contrast, coverage that is highly competitive or available from multiple admitted insurers typically does not fall under the surplus lines category because it can be standardly placed without the need for surplus lines markets. Additionally, affordable coverage for all consumers does not directly relate to the specific nature of surplus lines insurance, which is focused more on the ability to provide coverage for unusual or high-risk instances rather than costs or general availability.