Excess Insurance

Definition


Excess Insurance: Coverage that sits above an underlying primary insurance policy, activating only after the primary limit has been exhausted. The excess insurer pays the portion of a covered loss (e.g., auto, home, or commercial liability) that exceeds the dollar limit stated on the underlying policy; there is no duplication or overlapping payment. In Canada, the underlying policy must first respond in full, and the excess insurer is generally not involved in handling day-to-day claims unless the loss pierces that underlying limit.

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Coverage Type

Disclosure

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