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 Oklahoma, excess insurance is a type of coverage that provides additional protection beyond the limits of the insured's primary policy. It is designed to cover claims that exceed the amount of the primary insurance coverage, acting as a safety net for losses that surpass the underlying policy's maximum. Excess liability insurance specifically extends the coverage of a primary liability policy, such as general liability or commercial general liability, with additional limits that apply under the same terms as the primary policy. Umbrella insurance, while similar, differs in that it can provide broader coverage and may cover multiple underlying liability policies, including auto, general liability, and employers' liability. It activates when the limits of one of the underlying policies are reached. Both excess liability and umbrella insurance are crucial for individuals and businesses seeking to protect their assets from significant claims that could exceed their primary insurance coverage. It's important for policyholders to understand the terms and coverage limits of their excess and umbrella insurance policies to ensure adequate protection.