excess coverage

Excess coverage refers to an insurance policy that kicks in only after another primary policy has paid its share of a claim. It acts as an additional layer of protection, covering costs that exceed the limit of the primary insurance. Essentially, it ensures that valuable assets or higher-risk situations are protected beyond the initial coverage, reducing the financial burden if damages or losses are larger than what the primary policy covers. This setup provides extra security and peace of mind for individuals or businesses facing substantial potential claims.