Which type of insurance coverage is available once the underlying policy limits are exhausted?

Excess liability coverage is designed to provide additional protection once the limits of an underlying policy, such as a general liability insurance policy, have been exhausted. This type of insurance acts as a supplement, covering claims above the limits of the primary coverage. For example, if a general liability policy has a limit of $1 million and a claim costs $1.5 million, the excess liability coverage would kick in to cover the additional $500,000.

This is particularly important in high-risk industries or situations where claims could exceed standard policy limits, providing peace of mind to businesses and individuals that they will not face significant financial liability beyond their initial coverage. Excess liability does not replace the underlying insurance; rather, it enhances it by providing a layer of additional security.

The other options like general liability coverage, errors and omissions coverage, and property insurance coverage serve different purposes and do not specifically provide additional coverage after the limits of another policy have been exhausted. Each of those types deals with specific risks and liabilities inherent to their particular coverage area but does not extend the financial limits once an underlying policy is maxed out.