What is layer in insurance

Layer — a horizontal segment of the liability insured—for example, the second $100,000 of a $500,000 liability, is the first layer if the cedent retains $100,000 but a higher layer if it retains a lesser amount.

How do Layers work in 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.

What is a primary layer in insurance?

Primary insurance is the policy that covers a financial liability for the policyholder as a result of a triggering event. Primary insurance kicks in first with its coverage even if there are other insurance policies. Excess insurance covers a claim after the primary insurance limit has been exhausted or used up.

What is Umbrella layer?

Ozone layer is called ozone umbrella/shield because it filters out the harmful, high energy ultra violet radiations coming from the sun.

What is a working layer?

Working Layer — a dollar range in which an insured or, in the case of an insurer's book of business, a group of insureds is expected to experience a fairly high level of loss frequency.