What is the definition of 'excess insurance'?

Excess insurance is specifically designed to provide an additional layer of coverage that activates once the limits of a primary insurance policy have been exceeded. This means that if an insured individual experiences a loss that surpasses the amount covered by their primary insurance, the excess insurance will cover the remaining amount, up to its own limits. This type of insurance is beneficial for individuals or businesses that want to protect themselves from particularly large claims that could result in significant financial loss.

The other options do not reflect the accurate definition of excess insurance. For instance, while one option describes insurance that pertains to specific types of risk, this does not capture the broader function of excess insurance. Another option refers to benefits related to significant medical expenses, which could apply to various types of insurance but does not specifically denote the concept of excess coverage. Lastly, the definition regarding a policy that only covers the excess amount of a claim is misleading because this still doesn't clarify the relationship with primary coverage, which is central to understanding excess insurance.