Upon placing surplus lines insurance, what must be provided to the insured or broker?

When surplus lines insurance is placed, it is essential to provide the insured or broker with a certificate or other evidence of insurance. This requirement serves multiple critical functions.

First, the certificate acts as proof that the insurance coverage has been secured, confirming to the insured that they have coverage in place. This is particularly important in surplus lines where coverage may be arranged with non-admitted insurers, thus highlighting the need for documented evidence.

Additionally, providing a certificate or evidence of insurance facilitates transparency and understanding regarding the specific terms and conditions of the coverage. It allows both the insured and the broker to verify aspects of the policy, including limits, exclusions, and the effective dates. This documentation is fundamental, especially in situations involving unique or specialized risks that may not be available in the traditional insurance market.

In some contexts, while a comprehensive policy document or detailed claims procedure may also be important, the immediate and critical need is to confirm that the insurance has been placed, making the certificate or evidence of insurance the correct and necessary response.