What does excess liability insurance provide?

Excess liability insurance is designed specifically to provide additional coverage that goes beyond the limits of underlying policies, such as general liability, auto liability, or homeowners insurance. When a claim exceeds the coverage amount of these underlying policies, excess liability insurance kicks in to cover the additional costs, thereby acting as a financial safety net for the policyholder. This type of insurance is critical for individuals or businesses that may face significant liabilities exceeding their standard policy limits.

The other choices do not accurately define excess liability insurance. While coverage for non-work-related injuries is typically handled under other standard insurance policies, protection against identity theft pertains to a completely different type of insurance that deals with personal data breaches and fraud. Furthermore, stating that it provides coverage for all damages without limits inaccurately represents the nature of excess liability insurance, which still has specific limits and thresholds that apply.