What is excess Layer Insurance

How do excess layers work?

If you make a claim, your primary insurer will pay out all claims up to the limit specified in that policy. The insurer that provides the excess layer policy will pay out claims above that limit, up to the maximum amount of the excess layer policy.

What are excess layers?

Excess layer (aka Excess of Loss) insurance is when one insurer provides insurance for the first part of a claim/loss and then another insurer provides insurance for the next part of the claim/loss. The insurance for the next part of the claim/loss is referred to as the Excess Layer.

What is an excess insurance policy?

Excess insurance provides additional financial limits above those covered by the underlying policy. Unlike umbrella policies, excess insurance does not expand the terms, or scope, of the underlying policy, but rather, covers higher limits to safeguard against unforeseen, catastrophic claims and loss.

What is layered insurance?

Layering — the building of a program of insurance coverage using the excess of loss approach. Layered programs involve a series of insurers writing coverage, each one in excess of lower limits written by other insurers.