What type of insurance might surplus lines cover?

Surplus lines insurance is designed to provide coverage for risks that are too high or unique for standard insurance markets to underwrite. This type of insurance is often utilized by businesses that engage in high-risk commercial operations. Such operations may include industries like construction, manufacturing, or technology that may face greater risks than traditional insurers are willing to cover. This can involve complex or specialized risks that demand coverage tailored to specific industry needs.

Choosing option B reflects an accurate understanding of the role of surplus lines in the insurance market. Surplus lines brokers are able to access non-admitted carriers that are not licensed in the state's insurance market, allowing them to secure coverage for these high-risk entities when standard options are not available. Consequently, this flexibility is a vital component in ensuring that businesses with unique risks can still protect their financial interests through appropriate insurance solutions.