Excess insurance is often referred to as secondary insurance. It is protection that pays beyond the maximum paid by a primary insurance policy when damages or losses exceed that amount.
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Another synonym for excess insurance is "umbrella policy," which Business Dictionary defines as an "insurance policy that covers amounts above those covered under one or more other primary policies, and which does not pay until the losses exceed a certain sum."
Excess policies are typically bought from excess-insurance specialists. Excess policies can often have per-claim deductibles, and the carrier usually manages the claim directly with the service provider and bills the insured for any owed portion.
Claims activities can often be delayed due to coordination challenges. Multiple claims on a covered event can be a hassle for the insured. Pricing varies and can be hard to predict.
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