Excess Liability Insurance may respond once a covered claim reaches the attachment point shown in the excess policy.

For example, a business may have:

• A $5 million primary liability policy
• A further $5 million Excess Liability layer above it

If a covered claim reaches $7 million, the primary policy may respond up to its applicable $5 million limit and the excess layer may then respond to the remaining amount, subject to the terms of both policies.

What can affect when the excess layer responds? #

This can include:

• How the underlying limit must be exhausted
• How defence costs are treated
• Sub-limits in the primary policy
• Differences between the primary and excess wordings
• Other insurance applying to the claim
• Settlement and consent requirements
• Whether the excess insurer has been properly notified

An excess insurer does not necessarily provide identical cover to the primary insurer or automatically follow every decision made by the primary insurer.

If a claim or circumstance could potentially reach an Excess Liability layer, notify Webber Insurance early. The excess insurer may require notification before it becomes clear that the claim will reach its attachment point.

Contact our team if you need assistance with an Excess Liability claim.