Insurance coverage for risks that standard, admitted insurance companies are unwilling to cover. Surplus lines insurers are not licensed in the state where the risk is located but are allowed to write business through surplus lines brokers. They provide coverage for high-risk or unusual exposures.
Related Terms
Broker
A licensed insurance professional who represents the buyer rather than the insurance company. Unlike agents, brokers shop the market across multiple insurers to find the best coverage and price for their clients.
Premium
The amount you pay to an insurance company to maintain your coverage, typically billed monthly, quarterly, or annually. Premiums are determined by factors such as risk level, coverage amount, deductible, location, and claims history.
Underwriting
The process insurers use to evaluate the risk of insuring a person or asset and determine the appropriate premium. Underwriters review applications, claims history, credit scores, and other data to decide whether to issue a policy and at what price.