Can individuals directly purchase surplus lines insurance?

Surplus lines insurance typically refers to coverage that is not available through standard insurance markets, often due to the unique or high-risk nature of the insured's needs. In Missouri, as in many states, individuals cannot purchase surplus lines insurance directly. Instead, they must go through a licensed surplus lines broker. This requirement is in place to ensure that individuals receive proper guidance and understanding of the products available, as well as to comply with regulatory standards governing surplus lines insurance.

Licensed brokers are specifically trained to handle these types of insurance, ensuring that buyers understand the complexities and are matched with appropriate carriers willing to underwrite their specific risks. This system helps maintain consumer protection as it necessitates that brokers meet certain licensing criteria and adhere to state regulations, ultimately making the transaction safer and more reliable for the individual seeking coverage.