What is the difference between primary and excess insurance?

Primary insurance is insurance that covers a risk or liability first in the event of an incident or accident. It is the first line of defense for things like property damage and personal injury. It is important, as it is the main protection against risks or losses. Excess insurance is insurance that provides additional coverage above and beyond primary insurance. It is the second layer of protection that kicks in once the primary insurance coverage has been exhausted. Unlike primary insurance, excess insurance often does not have a deductible, meaning the coverage begins immediately with the first dollar of any claim. Primary and excess insurance have different levels of coverage and may be best used in combination with one another. For example, if you have a property that is worth more than the limit on your primary insurance policy, you will need excess insurance. In addition, primary insurance may be able to cover the costs of medical bills if you are injured in an accident, but excess insurance can cover any costs that are above and beyond the primary insurance limit. In the State of Washington, insurance regulations must be adhered to in order to maintain coverage. This includes primary and excess insurance. Primary insurance is required by law in order to provide coverage while excess insurance is not. However, it is recommended that both types of insurance are in place to protect against risks or losses.

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What is the difference between primary and excess insurance?

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