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Insurance & Bondingaka: excess coverageaka: follow-form excess

Excess Liability

In Plain English

Extra insurance that kicks in after your main policy's limit is used up.

Definition

Excess liability insurance provides additional coverage above the limits of a specified underlying policy once those limits are exhausted. Unlike an umbrella policy, excess liability follows the exact terms and conditions of the underlying policy and does not fill gaps in coverage. On large construction projects, owners may contractually require contractors to carry excess liability limits of $5 million or more above their primary CGL coverage.

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