Excess Liability Insurance provides additional liability limit above an underlying or primary insurance policy.

For example, a business might hold:

• $5 million of primary liability insurance, and
• a further $5 million Excess Liability layer

Subject to the terms of both policies, this can provide up to $10 million of total available limit for the relevant insured exposure.

When can Excess Liability be useful? #

It may be considered where:

• A contract requires a higher insurance limit
• The primary insurer cannot provide the full required limit
• Higher limits are required for particular projects
• The business wants additional liability capacity
• Several insurers are required to provide the total limit

How does the excess layer work? #

The excess policy generally responds only once the agreed underlying limit or attachment point has been reached, subject to its own terms.

An excess policy does not automatically:

• Fill gaps in the primary policy
• Cover activities excluded by the primary insurer
• Increase every sub-limit
• Correct mismatched policy periods or insured entities

The primary and excess policies therefore need to work together.

Differences in wording, exclusions, activities, territories, jurisdictions and claims conditions can create gaps between layers.

Contact our team if you need additional liability capacity.