Excess Layer of an Insurance

Excess layer cover is a policy designed to provide increased limits of liability over your primary insurance cover.



Example:

 A Roofing company has £2,000,000 Public Liability, they have requested cover for £5,000,000 for a contract they are starting.

Excess layer will provide the £3,000,000 over £2,000,000 to give a total of £5,000,000"



Example phase from an insurance policy:

Combined single limit bodily injury, property damages losses up to USD 20M any one occurrence and in the aggregate in excess of a primary layer of USD 40M....



In above example aggregate value of the insurance policy is 20M+40M=60M





Source: http://www.scruttonblandinsurance.co.uk/liability/excess_layer.php