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 Nevada, excess insurance is designed to offer additional coverage beyond the limits of the insured's primary policy. It activates when the primary insurance's coverage limit is reached, providing extra protection against significant losses. Excess liability insurance specifically extends the coverage of a primary liability policy, such as general liability or commercial general liability, with the same terms and conditions, but with higher coverage limits. On the other hand, umbrella insurance not only offers higher coverage limits but also broadens the scope of coverage, potentially covering risks not included in the underlying policies. Both types of insurance serve as a safety net for individuals and businesses, allowing them to protect their assets from claims that exceed the limits of their primary insurance policies. It's important for policyholders to understand the terms and coverage limits of their excess and umbrella insurance policies to ensure adequate protection. As with any insurance product, the specific terms and regulatory compliance may be subject to Nevada state statutes and regulations, as well as federal law.