What can surplus lines insurers often cover that standard insurers may not?

Surplus lines insurers are uniquely positioned to handle non-standard risks, which typically involve situations or properties that are not easily insurable by standard insurance companies. These non-standard risks might include high-risk industries, specialized types of coverage, or unique situations that don't fit the typical underwriting criteria of standard insurers.

Standard insurance companies often have strict guidelines and risk appetite, which means they may decline to cover certain clients or situations that are deemed too risky or unusual. This is where surplus lines insurance comes into play, as it provides flexibility and options for coverage that meet the needs of those who may have difficulty obtaining insurance through traditional channels.

The other options do not accurately represent the core function of surplus lines insurers. Highly regulated industries typically fall under standard coverage due to their regulatory standards. Likewise, the assertion that surplus lines only cover local businesses or personal insurance does not reflect the broader market dynamics and the versatility surplus lines insurers offer. They can provide coverage for a wide array of risks, regardless of the business's location or the type of insurance (personal or commercial) required.