Excess Liability Insurance should not be treated as an automatic solution for exclusions in an underlying policy. Its main purpose is generally to provide additional limits, although the precise cover depends on the wording.

What is a follow-form excess policy? #

A follow-form policy is intended to follow specified terms of the underlying insurance, subject to the excess policy’s own provisions.

The excess policy may still contain separate definitions, conditions, exclusions, geographic restrictions and underlying insurance requirements.

Will an excess policy cover an excluded activity? #

Usually, an activity excluded by the underlying policy should not be assumed to be covered by the excess layer. Cover would need to be specifically provided by the excess wording.

A claim accepted by the primary insurer is also not automatically guaranteed to be covered by every excess insurer. Each layer applies its own policy terms.

Can Umbrella Liability provide broader cover? #

Some Umbrella Liability policies may provide broader protection in specified circumstances. This does not mean they fill every gap.

Any broader cover, self-insured retention or separate condition must be identified in the actual wording.

Why should all layers be reviewed together? #

A liability program should be structured so that:

• Insured activities are consistently disclosed.
• Limits and attachment points align.
• Policy periods are compatible.
• Territorial and jurisdictional cover is suitable.
• Significant exclusions and differences are understood.
• Claims notification requirements are coordinated.

Webber Insurance can compare the proposed layers and help identify material inconsistencies. The policies should be reviewed as one program rather than as unrelated purchases.