Excess of Loss

Excess of Loss Insurance

Excess of Loss Insurance provides an additional limit of liability on top of an existing insurance programme. Often called top-up or XOL insurance, this product is useful for any organisation that needs to purchase more cover than a primary insurer is willing or able to provide.

It is quite often the case that you will be required to purchase a certain amount of cover, whether that is mandated by a regulator or a professional association, or under a contract that you have entered into with a third party. However, your primary insurer may not be able or willing to increase their limit of liability. That's where Excess of Loss Insurance comes into play. Your broker will then look to build what's called a tower of insurance above the primary limit of liability to top up your cover to the amount that you require. For example, if you enter into a contract with a third party that says that you need to purchase $40m worth of public liability cover, but your current insurer is unable to increase their limit of liability more than $20m, then your broker would need to source an additional limit via an excess of loss policy to top up your cover.

For large excess towers of insurance, there may be multiple underwriters that will need to provide excess policies up to the required limit of liability. Each excess policy i the tower is referred to as a different layer or excess layer.

Antipodean Underwriting's Excess of Loss Policy can be tailored to sit in excess of any one or more of the products which we write.