What does 'excess liability coverage' provide?

Excess liability coverage offers additional protection beyond the limits of a standard liability policy, which means it provides extra coverage when the limits of an underlying policy are exhausted. This type of insurance is particularly beneficial for individuals and businesses who want to protect their assets from large claims or lawsuits that exceed the standard liability coverage limits. For example, if a standard liability policy has a limit of $1 million and a claim arises that results in a judgment of $1.5 million, the excess liability coverage would cover the remaining $500,000. Therefore, this provides peace of mind and extra financial security, ensuring that you are not left exposed to significant losses due to high-cost claims.

The other options focus on narrower scopes of coverage, such as personal property claims, medical expenses, or legal protection, which do not encompass the broader protective function that excess liability coverage serves.