What is a significant advantage of excess liability insurance?

The significant advantage of excess liability insurance is that it increases policy limits significantly. This type of insurance is designed to provide additional coverage beyond the limits of an underlying primary insurance policy. Essentially, while a primary policy might cover a loss up to a certain limit, excess liability insurance kicks in once those limits are exhausted. This can offer peace of mind, particularly for individuals or businesses at higher risk of substantial claims, such as those operating in fields with significant liabilities.

In contrast, while the simplicity of claims processing and underwriting can be beneficial, it is not the primary reason excess liability insurance is favored. Similarly, the assertion that excess liability insurance has no exclusions compared to base policies is not accurate, as excess policies often mirror the exclusions of the underlying coverage. Lastly, the option regarding coverage for unrelated losses does not pertain to the primary advantage of excess liability insurance, as it is more focused on enhancing limits rather than expanding the types of covered risks.