What type of coverage is typically excluded from surplus lines insurance?

Surplus lines insurance is specifically designed to cover risks that admitted insurers in a state are not willing to underwrite. This includes high-risk businesses and specialized coverage needs that are not met by standard policies. However, if coverage is readily available from admitted insurers, it is not permissible to issue that coverage through a surplus lines insurer. This ensures that standard market capacity is utilized before turning to the surplus lines market, which is intended for unique, difficult-to-place risks. By excluding coverage that is available from admitted insurers, the surplus lines market focuses on insuring those risks that do not fit within the standard underwriting guidelines.