Yes.

Several Excess Liability policies can be arranged in layers to build the total liability limit required.

This is sometimes referred to as a layered insurance program or insurance tower.

How does a layered program work? #

For example:

• Primary insurer provides the first $5 million
• First excess insurer provides $3 million above that
• Second excess insurer provides a further $2 million

Subject to the terms of each policy, the overall program can provide up to $10 million of available limit.

Different insurers may be used because:

• One insurer cannot provide the full limit
• An insurer does not want the entire exposure
• Additional market capacity is required
• A contract requires a high limit

Why must the layers be coordinated? #

The policies should be reviewed together to check that matters such as the following align:

• Attachment points
• Insured entities
• Business activities
• Policy periods
• Territories
• Jurisdictions
• Exclusions
• Claims conditions
• Defence costs

A mismatch between layers can create a gap in the intended insurance program.

Contact our team before committing to a high contractual insurance limit so there is time to arrange and structure the required capacity.