Which situation might require the use of excess liability insurance?

Excess liability insurance is designed to provide additional coverage over and above the limits of existing liability policies. This is particularly useful for individuals or businesses that may face significant liability exposure and want to protect their assets more comprehensively. When someone seeks higher coverage limits than those provided by their primary liability insurance, excess liability insurance serves to fill that gap, offering peace of mind against potential catastrophic losses.

Basic coverage, regular car accidents, and low-value property damage typically do not require excess liability insurance because they generally fall within the limits of standard policies or coverages that are already adequate. Individuals generally opt for excess liability insurance specifically to increase their coverage limits in anticipation of higher potential claims, making it the appropriate choice in such situations.