Which of the following is a common risk covered by surplus lines insurance?

Surplus lines insurance is specifically designed to cover risks that are considered too unique or high-risk for standard insurance carriers. This type of insurance becomes necessary when traditional insurers decline to provide coverage due to the nature of the risk involved. Unique or high-risk properties, such as those in disaster-prone areas or properties with unusual features, are prime candidates for surplus lines insurance, as these risks exceed the underwriting guidelines of standard insurers.

Standard commercial properties and low-risk personal auto insurance typically fall within the realm of coverage provided by traditional insurers. Health insurance for individuals also generally does not require surplus lines coverage, as it is offered by various standard providers.

Overall, surplus lines play a critical role in the insurance market by allowing coverage for atypical risks that cannot be obtained through conventional means.