What does a stand-alone excess liability policy cover?

A stand-alone excess liability policy provides coverage that goes beyond the limits of a base liability policy, essentially offering additional protection in excess of the underlying coverage limits. This means it enhances the coverage of the base policy by providing an extra layer of liability insurance. However, it may also contain its own specific exclusions and limitations that are not necessarily part of the base policy, which is a crucial aspect of its function.

Therefore, the nature of a stand-alone excess liability policy is that it supplements the base policy while potentially introducing unique exclusions and limitations that must be understood by policyholders. This distinction is essential for assessing total risk coverage while navigating multiple layers of insurance. The emphasis on the additional unique exclusions and limitations is vital for someone seeking to understand how excess liability interacts with underlying policies.