Excess insurance is insurance that covers the insured against certain risks and applies only to loss or damage in excess of a stated amount, or of a specified primary insurance policy or amount of self-insurance.

Although the terms excess liability insurance and umbrella insurance are sometimes used interchangeably, there is an important distinction. Excess liability insurance provides additional coverage for one of your primary liability insurance policies (general liability insurance, commercial general liability insurance) and kicks in with an additional amount of coverage under the same terms as the underlying, primary policy. Umbrella insurance provides additional coverage for several underlying liability policies and kicks in when proceeds from one of those policies reaches its limit.

In insurance industry jargon, both excess liability insurance policies and umbrella insurance policies are said to “sit on top of” the underlying liability insurance policy or policies.

In Maine, excess insurance is a type of coverage that provides additional protection beyond the limits of the insured's primary policy. It activates only when the underlying policy's limits have been exhausted. This type of insurance is particularly useful for individuals or businesses that want to protect themselves against claims that exceed their primary insurance coverage. Maine's regulations regarding insurance, including excess insurance, are governed by the Maine Insurance Code, which is enforced by the Maine Bureau of Insurance. The distinction between excess liability insurance and umbrella insurance is recognized in Maine, with excess liability insurance offering additional limits over a single underlying policy, while umbrella insurance typically extends coverage over multiple underlying policies, potentially including new exposures not covered by the primary policies. Both types of insurance provide a safety net above the primary insurance, but umbrella insurance usually offers a broader scope of coverage.