Excess Coverage — Insurance Claims Definition
Liability
Liability insurance that pays only after underlying primary limits are exhausted, often following the terms of the primary policy.
Excess policies attach above specified underlying limits and usually follow form to the primary — same exclusions unless the excess explicitly differs. It is narrower than a full umbrella in many programs.
Tower structures stack multiple excess layers for large corporations.
Examples
A $5M excess GL layer pays nothing until the primary $1M CGL is exhausted by judgment or settlement.
Common Mistakes
Assuming excess will drop down like some umbrellas; excess may not respond if primary denies for uncovered acts.
