In insurance, what term is used for coverage that applies on top of underlying insurance?

The term for coverage that applies on top of underlying insurance is known as excess insurance. This type of insurance is designed to provide additional protection when the limits of the underlying policy have been exhausted. Typically, it kicks in after the primary layer of coverage has been fully utilized, offering a higher limit of liability for claims.

Excess insurance is valuable in situations where high-value claims might exceed the limits of the primary insurance policy. By having excess insurance in place, policyholders can ensure they are safeguarded against large losses that would otherwise leave them financially vulnerable after the primary insurance payout has been made. This structure allows for better risk management and financial security for individuals and businesses alike.

The other terms mentioned might imply additional forms of insurance, but they do not specifically denote the layer of coverage that supplements existing insurance policies in the manner that excess insurance does.