What should agents ensure about the surplus lines policies they sell?

Agents have a responsibility to ensure that clients are fully informed about the details of the surplus lines policies they sell. This includes explaining coverage terms, conditions, and any limitations associated with the policy. Surplus lines insurance typically addresses risks that are not covered by standard insurance markets, making it essential for agents to provide comprehensive information.

By clarifying these aspects, agents can help clients understand what is covered under the policy and what is not, thus enabling them to make informed decisions. This transparency is crucial, especially considering that surplus lines products may have unique provisions or exclusions that differ from traditional insurance policies. Keeping clients well-informed fosters trust and helps them better manage their coverage needs.

In contrast, omitting information about coverage limits, focusing solely on premiums, or not discussing essential policy terms can lead to misunderstandings and dissatisfaction in the event of a claim. Therefore, ensuring that clients comprehend the nuances of their policies is a critical component of an agent's role in the surplus lines market.