What does the term "excess liability insurance" refer to?

Excess liability insurance specifically refers to a type of coverage that provides additional protection beyond the limits of standard liability policies. This means that if an insured faces a claim that exceeds the coverage limits of their primary liability insurance, excess liability insurance steps in to cover the additional amount. It is often used by individuals or businesses that have significant assets to protect and want to minimize their financial risk in the event of a large claim or lawsuit.

This type of insurance is particularly important for high net-worth individuals or organizations that may be at higher risk for large claims, as it offers an extra layer of security and peace of mind against the financial impact of severe liability claims. The other options do not accurately capture this essential feature of excess liability insurance.