Which of the following is true about Excess Liability Coverage?

Excess Liability Coverage is designed to provide additional financial protection beyond the basic liability limits established in a primary insurance policy. This means that if a claim exceeds the limits of the primary liability coverage, the excess liability coverage can take over to cover the remaining costs. This type of policy is particularly important for individuals or businesses at a higher risk of lawsuits or significant claims, as it helps ensure they have sufficient coverage to protect their assets and financial wellbeing.

The focus of Excess Liability Coverage is on providing increased limits rather than specific property types. The coverage is also not the only form of liability insurance, as there are various other types and layers of liability insurance that can exist. Furthermore, Excess Liability Coverage is not limited to personal policies; it can be applicable to both personal and commercial contexts, making it a versatile option for enhancing liability coverage.