What does excess insurance provide coverage for?

Excess insurance serves as a supplementary layer of coverage that kicks in after the limits of a primary insurance policy are utilized. This means that in the event of a claim surpassing the primary policy's coverage limit, the excess insurance can cover the additional amount, providing more substantial financial protection for insured parties. This feature is particularly beneficial for protecting against large claims or unforeseen circumstances that can cause damages exceeding primary coverage limits.

In contrast, the other options do not accurately depict the nature of excess insurance. While claims resulting from negligent acts may be covered, this is typically within the primary insurance and does not specifically highlight the purpose of an excess policy. Additionally, excess insurance does not provide blanket coverage for all types of risks, nor does it limit its coverage only to losses occurring outside the primary policy’s coverage. Instead, it specifically enhances the financial protection afforded when the primary insurer's limits are reached.