What type of insurance provides additional coverage above those limits of primary insurance?

Excess insurance is designed to provide additional coverage that goes beyond the limits of primary insurance policies. This type of insurance is beneficial when the coverage provided by primary insurance may not be sufficient to cover larger claims or liabilities. For instance, if a primary insurance policy has a limit of $1 million, an excess insurance policy can cover amounts above that limit, offering greater financial protection for the policyholder.

This type of insurance is particularly useful for individuals or businesses exposed to higher risks or those who want to ensure that they have adequate coverage in case of significant claims. By having excess insurance, policyholders can avoid potential out-of-pocket expenses that exceed the coverage limits of their primary insurance.