Why might buyers seek surplus lines insurance?

Buyers may seek surplus lines insurance primarily because it has a broader range of coverage options. This type of insurance comes into play when a standard market policy cannot accommodate the unique risks or needs of a buyer. Surplus lines insurers can offer specialized or non-standard coverage that is not readily available through traditional insurance markets. This flexibility is particularly beneficial for businesses or individuals with unique or high-risk situations.

While some buyers might turn to surplus lines because they feel it's the only option available, it’s essential to recognize that the primary motivation often revolves around the availability of tailored solutions that meet specific requirements. The other options do not reflect the true nature of surplus lines insurance, as it is not automatically less expensive, does have licensing regulations in place for distribution, and it does not lack the regulatory framework of standard policies.