What is the difference between primary and excess insurance?

The difference between primary and excess insurance is that primary insurance covers the insured’s first layer of financial protection against a potential loss, while excess insurance is a supplemental policy that covers losses beyond the limits of the primary policy. Primary insurance typically covers a wide range of risks. For example, in Idaho, the standard homeowners insurance typically covers property damage, personal liability, and medical payments. Excess insurance is an additional policy that offers protection beyond the limits of a primary policy. It typically covers a narrow range of risks, such as environmental contamination, cyber liability, and farm liability. An example of excess insurance in Idaho is an umbrella policy. Umbrella policies provide additional coverage for liability claims that exceed the limits of the primary policy. In conclusion, primary insurance is the first layer of protection that covers a wide range of risks, while excess insurance is an additional policy that offers protection beyond the limits of a primary policy.

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What is the difference between primary and excess insurance?

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