What does "Follow Form" mean in the context of excess liability?

In the context of excess liability, "Follow Form" refers to coverage that adheres to the terms, conditions, provisions, and exclusions of the primary or base policy. This means that when an excess liability policy is structured as a follow form policy, it essentially extends the coverage of the base policy without altering the original agreements or stipulations laid out in that policy.

For instance, if the base policy contains specific exclusions, such as for certain types of liabilities or incidents, those same exclusions will apply to the excess liability coverage as well. This alignment ensures that there are no discrepancies between the primary and excess layers of coverage, providing a clearer understanding of what is and isn’t protected under both policies.

In contrast, the other options do not accurately capture the essence of "Follow Form." One option suggests that the coverage would be completely distinct from the base policy, which would mean it operates independently and does not adhere to the original terms. Another option discusses guaranteeing higher limits, which is a characteristic of excess policies in general but does not define "Follow Form." Lastly, the mention of providing additional coverages not in the base policy implies a deviation from the original terms, which again disrupts the essence of following the base policy’s conditions. Thus,