What does "excess liability" insurance provide?

Excess liability insurance is designed to provide an additional layer of coverage above the limits of an underlying primary insurance policy. This means that once the coverage limit of the primary policy has been exhausted due to a claim, the excess liability insurance will kick in to cover any additional amounts needed, up to its own limit. This type of insurance is particularly useful for individuals or businesses that face significant risk and want to ensure that they have sufficient protection against large claims or lawsuits that could surpass their primary policy limits.

The other options do not accurately describe the function of excess liability insurance. Minimum coverage above the policy limit does not encapsulate the full range of protection that excess liability offers. Similarly, coverage limited only to property damage and basic liability coverage do not reflect the comprehensive nature of excess liability insurance, which can cover a variety of claims including bodily injury and personal injury, beyond just property damage.