What Is Excess Insurance?
Excess insurance provides additional liability protection beyond the coverage limits of a primary insurance policy. It is often purchased by businesses, professionals, or individuals who face greater risks of high-value claims. In personal injury cases, excess insurance can be a critical source of compensation for victims when primary policies fall short.
Features of Excess Insurance
- Higher Limits: Offers substantial additional coverage for claims exceeding the limits of standard policies.
- Triggered by Exhaustion: Activated only after the primary policy’s limits are fully utilized.
- Coverage Scope: Typically mirrors the primary policy’s terms but may exclude certain risks.
Role in Personal Injury Cases
- Protecting Defendants: Prevents personal liability for damages exceeding the primary policy.
- Securing Full Compensation: Ensures plaintiffs receive damages for severe injuries, ongoing medical care, or long-term disabilities.
- Complex Claims: Excess insurance often comes into play in multi-defendant cases or claims involving extensive property damage.
Legal expertise is essential to navigate excess insurance claims, as insurers may dispute liability or policy applicability.