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Excess Insurance

Learn about the types of excess insurance that can supplement a policyholder’s primary insurance coverage and what it takes for excess-insurance coverage to apply.


Excess insurance is insurance that provides an additional layer of coverage in excess of the coverage provided by other, underlying layers of insurance policies. In this lesson, we’ll look at how excess insurance operates.

I. How Excess Insurance Works

A. The Tower of Insurance

A primary insurance policy is the first policy that applies to a loss. An insured may have only primary insurance for a particular loss. Or an insured may have a tower of insurance, which is multiple insurance policies...