What is excess insurance?

Excess insurance is a type of insurance designed to provide additional coverage beyond the limits of an individual's or business's primary insurance policy. When losses occur that exceed the primary policy's coverage limits, excess insurance steps in to cover those additional amounts. This allows policyholders to have a safety net for large claims that would otherwise be partially or fully uncovered by their primary insurance, ensuring better financial protection against significant risks.

The nature of excess insurance means it is particularly valuable for individuals or organizations that face potential liabilities or risks that could easily surpass the coverage provided by their basic insurance policies. This additional layer of security can be crucial in instances where high-value claims are possible.