What are surplus lines intermediaries responsible for?

Surplus lines intermediaries play a crucial role in the insurance market by facilitating access between retail producers and surplus lines insurers. These intermediaries specialize in connecting retail agents—who seek coverage for risks that standard insurers may not cover—with the surplus lines insurers that are willing to provide that coverage. This relationship is vital because surplus lines insurers often provide coverage for unique or high-risk situations that fall outside the capabilities or appetite of standard insurance companies.

In carrying out this role, intermediaries ensure compliance with regulatory requirements and help streamline the process of obtaining surplus lines insurance, which can often be more complex than standard insurance transactions. They do not underwrite risks for retail producers, transact direct insurance policies, or provide legal advice to insurers. Instead, their primary responsibility lies in bridging the gap between the retail market and the surplus lines market, making them essential players in addressing specialized insurance needs.