Admitted or Surplus Lines? Why Skyward Specialty Offers Both (and Why It Matters)

In today’s rapidly evolving Miscellaneous Professional Liability (MPL) market, finding the right coverage solution for your clients is more critical than ever. As risks become more diverse, brokers face the challenge of balancing traditional approaches with innovative solutions. That’s why it’s important to consider working with a carrier who offers both admitted and surplus lines coverage options (like Skyward Specialty) to meet the full spectrum of client needs. 

Admitted and surplus lines policies serve different purposes, each with its unique set of advantages. For many brokers, the decision on which path to take is often dictated by the complexity of the risk and the preferences of the client. While surplus lines are essential for covering unique or high-risk exposures, the benefits of admitted coverage can make it the right choice for many businesses. 

Here are seven key reasons brokers choose admitted coverage – and why having both options matters: 

7 Reasons to Consider Admitted Coverage 

1. Regulatory Compliance and Peace of Mind
   1. Admitted carriers are fully licensed and state-regulated, which reduces liability for brokers and protects policyholders. 
2. Consumer Confidence Backed by State Guarantee Funds
   1. Admitted policies are backed by guaranty funds, providing an additional layer of security in the rare event of insurer insolvency.
3. Predictable Pricing and Standardized Coverage 
   1. State-approved forms and rates bring consistency and transparency, ideal for accounts with straightforward needs. 
4. Built-In Tax and Fee Handling 
   1. Premium taxes and most applicable fees are typically built into the policy, saving the insured money and eliminating the broker’s need to manage tax filings or separate fee disclosures. 
5. Enhanced Broker Credibility 
   1. Offering an admitted option often elevates a broker’s reputation, signaling access to stable, reputable solutions backed by state oversight.
6. Aligning With Client Preferences
   1. Many clients, especially those with simpler exposures, feel more comfortable with admitted carriers because of the perceived stability and regulatory protections. 
7. A Competitive Advantage 
   1. Providing both admitted and surplus lines quotes strengthens the broker’s ability to serve clients across a wide range of professional exposures. 

The Ongoing Role of Surplus Lines 

Of course, not every risk is straightforward and fits within the admitted market’s appetite. Surplus lines, by their nature, are designed to provide flexibility for risks that are more complex or higher risk. This includes emerging industries, unconventional business models or accounts with unique risk factors that don’t conform to standard underwriting guidelines. 

The importance of surplus lines cannot be overstated, particularly in an era where new risks are constantly emerging, driven by factors like technological advancements, regulatory changes and evolving societal trends. Surplus lines carriers have the ability to offer customized policies that are not limited by the constraints of state-approved rates or forms, making them indispensable for covering these complex and often higher-risk exposures. In these cases, the ability to structure coverage outside of traditional standards allows brokers to meet the needs of clients in dynamic, fast-changing sectors where risk management needs are anything but conventional. 

“In a market where risk is evolving faster than ever, brokers need partners who can deliver both stability and flexibility—without compromise.” 

The Best of Both Worlds with Skyward Specialty 

With both admitted and surplus lines solutions under one roof, Skyward Specialty provides brokers with unmatched flexibility and confidence. Whether it's navigating the standard or the specialized, we’re here to guide you through the decision-making process, ensuring that every client is covered with the right solution. 

Download our marketing sheet to learn how we can help you choose the right protection for every client.