What does "excess insurance" provide?

Excess insurance is designed to provide additional coverage above the limits of a primary insurance policy. This means that once the primary insurance has paid out its limit for a covered loss, the excess insurance will cover any remaining eligible losses. This type of insurance is particularly beneficial for individuals or businesses that want additional protection against large claims that could exceed the limits set by their primary policy.

In essence, the role of excess insurance is to enhance the level of protection for policyholders by offering a safety net for larger claims or losses that might otherwise fall outside the coverage of their existing primary policy. This can be crucial in mitigating financial risk in scenarios where significant liabilities occur. Therefore, the definition captures the primary function of excess insurance accurately.