What type of insurance is offered when there is no readily available admitted market?

Surplus lines insurance is the correct choice because it is specifically designed for situations where standard or admitted market insurers are unable to provide coverage. This can occur when the risk involved is too high or unusual for typical policies, leading to a lack of options in the admitted market. Surplus lines enable brokers to source policies from non-admitted insurers who can underwrite unconventional risks.

This type of insurance is regulated differently than standard lines; while admitted insurers are backed by state guarantees and must meet specific state regulations, surplus lines do not have such requirements, allowing more flexibility in underwriting. This flexibility is essential for covering niche markets or specialized risks that are not adequately addressed by traditional insurers.