What is independently procured insurance?

Independently procured insurance refers to insurance that is secured directly by the insured without the involvement of a licensed producer or surplus lines broker. This type of insurance allows organizations or individuals to bypass the traditional intermediary process and negotiate directly with the insurer, finding coverage solutions that may not be readily available in the local market.

This practice is important for businesses or individuals who may require specialized coverage or face challenges accessing standard insurance due to their unique risks. It empowers the insured to take responsibility for their insurance decisions, often when they have the expertise to understand and negotiate the terms and conditions directly with the insurer.

The other options do not accurately define independently procured insurance. Insurance obtained through a licensed Louisiana producer involves an intermediary who sells insurance products, while insurance from an internationally recognized company may not necessarily be procured independently. Similarly, group purchasing methods imply a collective approach to securing insurance, which contrasts with the concept of independent procurement where the insured acts on their own.