What is described as "excess insurance"?

Excess insurance is best described as coverage that provides protection beyond the limits of the primary insurance policy. This type of insurance kicks in when the limits of the underlying policy have been exhausted, allowing the policyholder to have additional coverage for claims that surpass the original policy limits. This is particularly useful in situations where large claims may arise, ensuring that individuals or businesses have an additional safety net.

The other options do not accurately define excess insurance. Personal liability coverage pertains to risks associated with personal actions and responsibilities rather than the concept of excess limits. Coverage during natural disasters refers to specific perils rather than exceeding policy limits. Lastly, the geographic applicability of a policy does not relate to the characteristics of excess coverage, which is intended to provide broader limits regardless of where it is issued.