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Which is purchased for the purpose of extending the limits of liability on another policy?


Excess liability insurance provides additional coverage on one of a business's primary liability policies. It kicks in if the business exceeds the coverage limits of the underlying policy.

What is the purpose of excess liability policy?

Excess liability insurance serves as an extra layer of protection for losses in excess of your primary and umbrella policy limits but does not provide broader coverage beyond those underlying policies.

What policy provides additional liability?

An umbrella policy kicks in when you reach the limit on the underlying liability coverage in an auto, homeowners, renters or co-op / condo policy. It will also cover you for additional types of claims, such as libel and slander.

Is umbrella and excess liability the same?

Excess liability and umbrella liability are often confused as the same thing, but they're two different coverage types. Excess liability covers losses above the limits of your primary insurance policy. Umbrella liability offers higher liability limits and coverage where your underlying policy might not.

What is excess limit in insurance?

Excess Limit — the highest amount of insurance that will be offered in a given situation in excess of basic limits.