Which of the following is true about surplus lines insurance?

Surplus lines insurance is designed to provide coverage for risks that are not insurable by standard or admitted insurance carriers. One of the key aspects of surplus lines is the flexibility it offers policyholders. This flexibility manifests in various ways, including the ability to customize policy terms, choose higher limits, or include unique coverage provisions that might not be available through conventional insurance.

The underwriting process for surplus lines is more adaptable, allowing insurers to take on higher risks or provide coverage for niche markets that traditional insurers may avoid. This is particularly important for specialized industries or unusual business operations requiring bespoke insurance solutions tailored to their specific circumstances.

This flexibility is a significant advantage for businesses and individuals with unique insurance needs, making surplus lines a viable alternative to standard insurance options.