Glossary

Surplus lines broker

A specially licensed broker who places coverage with non-admitted insurers after the admitted market has declined, and handles the required filings and taxes.

Also called: surplus lines licensee, E&S broker, excess line broker, surplus lines wholesaler

A surplus lines broker holds a state license to place coverage with non-admitted insurers: carriers not licensed in the state, whose rates and forms are not filed with its regulator. Most are wholesalers. The retail agent who owns the client relationship submits the account, and the wholesaler finds a market, negotiates terms and issues the policy. Some retail agents hold the license themselves.

The license carries duties. The broker confirms that admitted insurers declined, usually through a documented diligent search, unless the buyer qualifies for a federal exemption as an exempt commercial purchaser. It checks the insurer's eligibility, collects and remits the state's surplus lines premium tax and any stamping fee, files the required affidavits, and discloses that state guaranty funds generally do not stand behind a non-admitted insurer. Under the federal Nonadmitted and Reinsurance Reform Act, the insured's home state sets the rules.

The channel is large. AM Best's September 2026 report put 2025 U.S. surplus lines direct premiums written at $143.3 billion, up 10.4% from 2024. For a buyer the practical point is that the retail agent may be quoting through a wholesaler, which adds a commission layer and a set of fees. Ask who the wholesaler is and what the total of premium, tax and fees comes to. The guide on wholesale brokers and surplus lines placement: how hard risks get insured covers placement step by step.

Last reviewed October 10, 2026

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Related terms

Excess and surplus lines Insurance placed with non-admitted insurers for risks the standard market declines or cannot price, with freer forms and rates but less regulatory protection. Non-admitted insurer An insurer not licensed in your state that may still write coverage there through a surplus lines broker, outside the state's rate and form filing rules. Diligent search The effort a surplus lines broker must make to find coverage from admitted insurers before placing a risk with a non-admitted insurer. Stamping fee A charge on a surplus lines policy that pays the state or its stamping office to review and record the placement, collected from the buyer with the premium. Managing general agent (MGA) An agency or underwriting firm that an insurer authorizes by contract to quote, bind and issue policies for a defined book, sometimes handling claims too.

Related guides

Admitted vs non-admitted insurers: what the difference means Admitted insurers are licensed in your state and backed by its guaranty fund. Non-admitted (surplus lines) insurers are not. What that changes for your policy. Independent agent, broker, captive agent or direct? How independent agents, brokers, captive agents and direct insurers differ in who they legally represent, how they are paid and how many insurers see your risk. Writing a broker RFP for a commercial insurance program How to run a broker RFP: what to send, questions on compensation and claims advocacy, a scoring matrix, and how to avoid blocking carrier markets. Insuring a cannabis business: why coverage is hard to find Federal prohibition, banking rules and reinsurance limits keep most cannabis cover in the surplus lines market. Where rescheduling stands in October 2026. Digital trading platforms in commercial insurance How electronic quoting and placement platforms connect brokers, wholesalers and carriers, what they change for a business buyer, and what they do not. Excess and surplus lines insurance explained What E&S insurance is, why risks go to non-admitted insurers, what you give up in guaranty fund protection, and how surplus lines taxes and filings work.

Related insurers

Accelerant A risk exchange whose insurers issue policies for 300-plus specialty MGAs insuring small and mid-sized businesses; a Thoma Bravo buyout is pending. AXIS Capital Bermuda-based specialty insurer selling E&S casualty and property, professional, management, cyber and construction lines to mid-size and large U.S. firms. Fortegra Jacksonville specialty insurer writing E&S and admitted programs through MGAs plus warranty and credit protection; owned by Korea's DB Insurance since May 2026. James River Nasdaq-listed E&S casualty writer for small and mid-size accounts, sold only through wholesalers, plus Falls Lake admitted comp; rated A-, negative outlook. Kinsale Insurance Richmond, Va., E&S-only insurer founded in 2009, writing hard-to-place casualty, property and professional risks for small and midsize firms via wholesalers. Lloyd's London insurance market of about 100 syndicates, rated A+ by AM Best. U.S. firms reach it as surplus lines cover through brokers, wholesalers and coverholders.

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Cannabis business insurance Why cannabis insurance sits mostly in the surplus lines market, what state regulators require, and the federal rescheduling status as of October 2026.

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