Excess Coverage Only Sample Clauses

The 'Excess Coverage Only' clause defines that the insurance policy will provide coverage only after the limits of any other applicable insurance have been exhausted. In practice, this means that if a loss occurs and there are multiple insurance policies in place, this policy will not pay out until the primary or underlying insurance has paid up to its maximum limit. This clause is commonly used to prevent overlapping payments and to clarify the order in which different insurance policies respond to a claim, ensuring that the policyholder cannot recover more than the total loss and that insurers' responsibilities are clearly allocated.