Surplus Lines

Surplus lines insurance is coverage placed with non-admitted carriers when standard insurance companies won't or can't provide what you need. It's common for startups in emerging industries like AI or crypto, or for businesses with unique risk profiles. Surplus lines requires a licensed surplus lines broker and often carries additional state taxes beyond the standard premium.

Surplus lines insurance often costs more than standard coverage because it covers harder-to-place or higher-risk exposures. The premium reflects the specialized underwriting and increased risk the carrier accepts. Additionally, surplus lines policies typically carry a surplus lines tax (usually 2-6% depending on state) on top of the premium. However, it may be your only coverage option.

Yes, surplus lines insurance must be placed through a broker licensed to handle surplus lines business in your state. Not all insurance brokers have this license. A surplus lines broker has access to non-admitted carriers and understands the compliance requirements, including filing and tax obligations, that come with placing coverage outside the standard market.