What Is A Surplus Line?

A surplus line of insurance can ensure that people and businesses can be covered for unique or high-risk events. Surplus lines often require specialized underwriting that standard insurers are unwilling or unable to cover.

Key features of surplus lines include:

Non-Admitted Insurers: Surplus lines insurers are not licensed in the state where the policy is sold but are authorized to provide insurance under the surplus lines market.

Specialized Coverage: These include high-risk or unusual situations within niche professional industries, high-value properties in disaster-prone areas or specialized events like a travelling carnival.

Flexibility: Surplus lines allow you to cover specific events or situations that you aren’t bound to long-term. They also allow you to tailor your plan to specific risks and not pay for coverage not needed in a blanket plan.

Regulatory Oversight: Non-admitted insurers do not follow states for regulations or rates but are subject to oversight by the state’s surplus lines office and must meet financial solvency requirements.

Taxes and Fees: Policies sold through surplus lines can incur additional taxes and fees which are then passed onto the state.

Stay tuned as we look to add more surplus lines insurance continuing education to our catalog in 2025!

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