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 West Virginia (WV), 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 coverage in the primary policy, whether it's a general liability, commercial general liability, or another form of liability insurance. Excess liability insurance specifically adds extra coverage to one primary policy and follows the same terms and conditions of that policy. On the other hand, umbrella insurance extends coverage over several underlying liability policies, offering broader protection that can cover different types of risks and potentially filling in coverage gaps. Both types of policies are considered to 'sit on top of' the primary insurance, activating when the limits of the underlying policy are reached. It's important for policyholders to understand the terms and coverage limits of their excess or umbrella insurance policies to ensure adequate protection for their specific needs. As with any insurance product, regulations and available options can vary, so consulting with an attorney or insurance agent familiar with WV insurance laws is advisable for tailored advice.