Insurance in any of the layers of insurance below an excess or umbrella liability policy
Excess liability policy
A policy designed to provide excess limits of coverage above the limits of the underlying coverage
Umbrella liability policy
A type of excess liability policy that provides additional limits of insurance and covers certain types of losses not covered by the underlying coverages.
Following-Form Excess Liability policy
An excess liability policy that covers a claim in excess of the underlying limits only if the loss is covered byt the underlying insurance.
Self-contained excess liability policy
An excess liability policy that is subject to its own provisions only and does not depend on the provisions of the underlying policies for determining the scope of its coverage.
Specific excess liability policy
An excess liability policy that requires the insured to retain a stipulated amount of loss from the first dollar for all losses resulting from each single occurrence; the insurer then pays losses from that occurrence in excess of the retention, up to the policy limit.
Aggregate excess liability policy
An excess liablity policy that requires the insured to retain a specified amount of loss from the first dollar during a specified period of time, usually one year; the insurser then pays all loss for that period that exceeds the retention, up to the policy limit.
Drop down coverage
Coverage provided by an umbrella liability policy when underlying aggregate limits are reduced or exhausted or the underlying insurance does not cover a claim.
Under an umbrella liability policy, an amount of loss that must be retained by the insured when the umbrella policy drops down to cover a claim that is not covered at all by an underlying policy.
An excess marine liability policy that operates in the same manner as an umbrella policy, providing not only excess limits but also drop-down coverage for some claims not covered by the underlying insurance.
Contractors limitation endorsement
An endorsement that is often added to the umbrella liability policies of contractors to restrict coverage for some of the more hazardous exposures faced by contractors.
The layers of coverage in an organization's insurance program that are most often called on to pay claims. (primary and umbrella layers)
A layer of excess liability coverage between the primary layer and the umbrella layer of an organization's insurance program.
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