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Excess Liability Insurance

Coverage that provides additional liability protection beyond the limits of an underlying policy

Detailed Explanation

Excess liability policies increase the overall limits of protection without expanding the scope of coverage. They only pay after the underlying policy limits are exhausted.

Practical Example

A business has a general liability policy with a $1 million limit. They purchase an excess liability policy for an additional $2 million in coverage. If they face a $2.5 million lawsuit, the general liability policy would pay the first $1 million, and the excess policy would cover the remaining $1.5 million.

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