Which types of risks are typically classified under surplus lines?

Surplus lines insurance is generally intended for risks that are not adequately covered by standard insurance markets. High-value properties and unique business operations often fall outside the conventional coverage offered by standard insurers due to their complexity or the heightened risk they present. For instance, a high-value property might be a luxury home or a commercial structure with unusual architectural features. Unique business operations could include specialized manufacturers or businesses with unique exposures that are difficult to underwrite.

Such scenarios are typically not well-served by standard insurance markets, leading those seeking coverage to turn to surplus lines providers, which can offer more tailored policies. The flexibility of surplus lines allows these insurers to adjust terms and coverage to meet the specific risks associated with these high-value or unique situations, making them the right choice for these types of insurable interests.