Sunday, 15 March 2015

What is excess liability policy


Excess liability policy 



A policy issued to provide limits in excess of an underlying liability policy. The underlying liability policy can be, and often is, an umbrella liability policy. An excess liability policy is no broader than the underlying liability policy; its sole purpose is to provide additional limits of insurance



For an example, if a Construction project has umbrella insurance cover for Works with a deductible of 1M (which means any claim below 1 M shall be born by Contractor and Insurance company will not pay) that has been arranged by Employer, then the Contractor shall arrange another insurance cover to cover the deductible and that insurance cover is call as Excess liability policy



Source - http://www.irmi.com/online/insurance-glossary/terms/e/excess-liability-policy.aspx







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