A diligent search form is a state required document in the world of E&S insurance placements (Surplus Lines). Surplus Lines insurance is used when coverage is not available in the standard/admitted marketplace in your state. These policies are often needed for unique or high-risk placements (i.e. vacant properties, coastal exposures, new ventures, gaps in coverage, claims history to name a few examples).
Before placing a surplus lines/non-admitted policy, state law requires that the agent first try to find coverage from an admitted carrier before approaching E&S options. The diligent search form is the agent’s way of showing that they made a good-faith effort to do so.
1. It’s not just a form; it’s proof that:
Agents checked with at least three licensed insurers (unless your state says otherwise).
The insurers declined to offer coverage.
Inspection fees if required for underwriting
The agent is not bypassing the standard market without trying to find coverage.
2. Agent Obligations:
Completing the form accurately—list the insurers you contacted and their responses
Submitting it promptly, before or at the time of binding the policy
Keeping recording in case regulators ask for proof later
The agent/insured representative must complete the form, submit it in a timely manner and keep it on file in the event they are ever brought into a legal proceeding with an insured or carrier. Some states require the insured to sign acknowledgements as well, including: AR, CT, DE, FL, MA, NY, OH, and WV. Fines and penalties can be assessed by the state for failure to comply, and it could impact not only their license, but that of the carriers you are placing coverage with.
The diligent search form protects the agent, the client, and the broker by keeping everything above board. It’s a small step that helps us stay compliant and continue offering solutions when the standard market can’t.
It’s important to note
Know your jurisdiction’s requirements as they vary by state and industry.
Document everything including dates, contacts, databases searched, and outcomes.
Use the form as a tool for accountability.
Understand its impact as it can determine whether a case or policy proceeds.
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