What is the difference between primary and excess insurance?

In South Carolina, primary and excess insurance are both types of insurance regulation law. Primary insurance, sometimes referred to as “first layer insurance”, is the primary protection that covers a policyholder’s liability if there is a claim made against them. This layer of insurance offers the most coverage and its limits will be depleted before any of the excess layers are used. Excess insurance, sometimes referred to as “umbrella insurance”, is an additional layer of protection that covers any remaining liability once the primary limits have been exhausted. Excess insurance policies are designed to provide coverage limits beyond the coverage of the primary policy. It also provides coverage for situations that the primary policy does not cover, such as certain types of lawsuits. In summary, primary insurance is the first layer of protection and offers coverage up to the limits of the policy. Excess insurance is an additional layer of protection that provides coverage beyond the limits of the primary policy and is designed to cover situations that the primary policy does not cover.

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What is the difference between primary and excess insurance?

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