Ace the Rhode Island Insurance Adjuster Exam 2026 – Unlock Your Claims Future with Confidence!

An excess policy in insurance is designed to provide additional coverage beyond the limits of a primary policy. This means that once the primary policy has reached its maximum payout limit, the excess policy can step in to cover the remaining costs. This type of policy is particularly useful for individuals or businesses that may face significant losses or liabilities that exceed the amounts covered by their primary insurance. Thus, having an excess policy can offer an added layer of financial protection against high-cost claims.

The significance of this policy lies in its role as a supplementary safeguard, ensuring that policyholders are not left exposed if they encounter claims that surpass their base coverage limits. It’s important to note that an excess policy functions in tandem with a primary insurance policy rather than as a standalone solution.