{"id":23050,"date":"2023-02-16T14:03:16","date_gmt":"2023-02-16T14:03:16","guid":{"rendered":"https:\/\/www.policybee.co.uk\/blog\/?p=23050"},"modified":"2023-10-25T09:45:47","modified_gmt":"2023-10-25T08:45:47","slug":"excess-layer-insurance-explained","status":"publish","type":"post","link":"https:\/\/www.policybee.co.uk\/blog\/excess-layer-insurance-explained","title":{"rendered":"Excess layer insurance explained"},"content":{"rendered":"\n

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\"Three<\/figure>\n<\/div>\n\n\n

What\u2019s excess layer insurance? Well, it\u2019s not to be confused with the insurance excess<\/a> on your policy. That\u2019s something completely different.<\/p>\n\n\n\n

Not to be harsh on poor old excess layer\u2026but it\u2019s one of those terms you likely won\u2019t hear about \u2013 until you need it. And that\u2019s because someone\u2019s recommended it: a broker (like us), most likely.<\/p>\n\n\n\n

Whether or not you need it, though, there are good reasons for knowing what excess layer insurance is and how it works. Which we\u2019ll explain.<\/p>\n\n\n\n

<\/p>\n\n\n\n

Know your limits<\/h2>\n\n\n\n

It stands to reason that insurance companies can\u2019t cover limitless risk. If they did, they\u2019d quickly go bust.<\/p>\n\n\n\n

That\u2019s why your insurance policy has a specified level of cover (sometimes called a \u2018limit of indemnity\u2019 or \u2018limit of liability\u2019). That\u2019s the maximum amount your insurer pays out for any one or multiple claims.<\/p>\n\n\n\n

Sometimes you might need more cover than your policy allows, though. This could be because:<\/p>\n\n\n\n