Define: Excess Policy

An excess policy is a type of insurance policy that provides coverage above and beyond the limits of a primary insurance policy. It is designed to provide additional protection in the event that the primary policy’s limits are exhausted.

When a claim is made and the limits of the primary policy are reached, the excess policy kicks in to provide additional coverage. It typically has its own set of limits and may have different terms and conditions compared to the primary policy.

While both excess and umbrella policies provide additional coverage, an excess policy typically follows the same terms and conditions as the primary policy, whereas an umbrella policy may provide broader coverage and can extend to multiple underlying policies.

The need for an excess policy depends on your specific circumstances and the level of risk you are exposed to. It is often recommended for individuals or businesses with high-value assets or those involved in high-risk activities.

The cost of an excess policy varies depending on factors such as the type of coverage, the limits required, and the level of risk involved. It is best to consult with an insurance provider to obtain an accurate quote.

Typically, an excess policy requires a primary policy to be in place. It is designed to provide additional coverage once the primary policy’s limits are exhausted.

Yes, you can usually choose the limits of your excess policy based on your specific needs and the level of coverage you require. However, the limits may be subject to underwriting approval.

Cancellation policies for excess policies may vary depending on the terms and conditions set by the insurance provider. It is important to review the policy documents or consult with your insurance provider to understand the cancellation process.

Yes, if a claim exceeds the limits of your primary policy, you can make a claim under your excess policy to cover the remaining amount, up to the limits of the excess policy.

Excess policies may have exclusions or limitations that are specific to the type of coverage provided. It is crucial to carefully review the policy documents and consult with your insurance provider to understand any exclusions or limitations that may apply.