What is the role of a surplus lines broker?

The role of a surplus lines broker is specifically to place business with non-admitted insurers. Non-admitted insurers are those that do not hold a license to operate in a particular state but can offer coverage for specialized or higher-risk insurance needs that admitted insurers may not cover. Surplus lines brokers are crucial in this context because they facilitate access to these non-traditional markets, allowing businesses and individuals to obtain coverage that meets their unique risk profiles.

In the insurance framework, surplus lines brokers also play a key role in navigating regulatory requirements while ensuring compliance with state laws regarding non-admitted insurance placements. This often includes ensuring that the risks being insured are not insurable by admitted carriers and that the necessary surplus lines taxes and fees are paid.

The other options relate to different functions within the insurance industry that do not align with the primary responsibilities of a surplus lines broker. For instance, representing insurance companies or providing legal advice typically falls under the purview of agents and legal professionals, while assisting customers with claims is mainly the duty of claims adjusters or customer service representatives within an insurance company.