Excess Insurance Coverage Clause Samples
The Excess Insurance Coverage clause defines the terms under which an insurance policy provides coverage that applies only after the limits of an underlying primary policy have been exhausted. In practice, this means that the excess policy will not pay out until all applicable primary insurance has been fully utilized, and it may specify which types of losses or claims are covered once the primary coverage is depleted. This clause is essential for managing large or catastrophic risks, ensuring that additional financial protection is available beyond the limits of standard insurance policies.
Excess Insurance Coverage. Without limiting the generality of the insurance requirements set forth herein, only if commercially available at commercially reasonable rates (in an amount reasonably consistent with the amount of such insurance generally obtained by companies engaging in real estate business operations of a similar size and nature as that of the Borrower) either (a) the insurance policies required hereunder shall not include any so called “terrorist exclusion” or similar exclusion or exception to insurance coverage relating to the acts of terrorist groups or individuals, or (b) excess or blanket coverage with respect thereto shall be provided, which excess or blanket coverage must be in an amount, from an insurer, and in accordance with terms and conditions reasonably acceptable to the Administrative Agent.