What does excess liability insurance provide?

Excess liability insurance provides additional coverage beyond the limits of the primary insurance policy. This type of insurance is designed to protect policyholders from liability claims that exceed the coverage limits of their existing insurance policies. For instance, if a business has a general liability policy that covers up to a certain limit, excess liability insurance would kick in to cover claims that surpass that limit, offering an extra layer of protection.

The other options describe specific types of coverage that either relate to limited circumstances or specific needs. Auto-related incidents, property damage, and cyber liability all represent distinct areas of insurance that do not reflect the broader scope of what excess liability insurance is intended to cover. This highlights the unique function of excess liability insurance in providing supplementary coverage, ensuring that policyholders can have greater peace of mind in the face of substantial liability risks.