Excess insurance attaches above a stated underlying limit and typically incorporates the underlying policy's terms by reference, which is why it is often called follow-form. Its obligations begin only when the underlying limits are exhausted by payment.
In large programs, multiple excess layers stack into a tower, each attaching above the one beneath it.
Alternative Names:
Excess Insurance, Excess Layer
Why it Matters?
In catastrophic injury, mass tort, and product cases, resolution requires the tower to participate, and excess carriers usually will not contribute meaningfully until the primary is committed to its limits. Notice timing, exhaustion mechanics, and whether a below-limits settlement erodes the attachment point are recurring disputes that can stall an otherwise achievable settlement.
Frequently Confused with
Related terms
Frequently asked questions
When does an excess policy have to defend?
Can the insured fill a gap to reach the excess layer?
