Excess Layer Insurance

Excess Layer Example

A building contractor holds a Public Liability Policy with a Limit of Indemnity of £2,000,000 which had previously been adequate to meet all his contractual obligations.

He now secures a Local authority contract which requires him to have a Limit of Indemnity of £10,000,000 He increase his current policy to 5 Million as this is the maximum limit his insurer can provide. We now need to purchase an Excess layer cover of £5,000,000 over the Primary cover of £5,000,000 with a different insurer that will then give us a limit of £10,000,000.