Excess and surplus lines are mainly used for which type of insurance needs?

Excess and surplus lines are primarily used for high-risk clients because they cater to insurance needs that the traditional or standard market often finds challenging to underwrite. This market provides coverage for unique, complex, or high-risk situations that don't fit the typical underwriting guidelines of standard insurers.

For high-risk clients, such as those involved in more hazardous activities or industries, excess and surplus lines offer customized coverage solutions that can address specific risks. This flexibility in coverage allows insurers to tailor policies that meet these unique risks, ensuring that businesses or individuals can secure the necessary protections against potential losses.

In contrast, low-risk clients typically access coverage through standard market policies, as they generally fit within the underwriting criteria established by traditional insurers. Standard market policies are designed for common coverage needs and are not suited for the specific demands that may arise from high-risk situations. Therefore, the primary function of excess and surplus lines is to provide coverage solutions for those who are considered high-risk, making this option the correct choice.