What type of insurance allows for broader terms and coverage due to multiple layers?

Excess insurance allows for broader terms and coverage because it provides an additional layer of protection over and above primary insurance. In an excess insurance arrangement, the insurer covers losses that exceed the limits of a primary insurance policy. This additional layer often comes with different terms and conditions, which can provide more flexibility in coverage options.

The use of multiple layers, including both primary and excess policies, enables insured parties to increase their overall coverage limits while managing costs effectively. This is especially advantageous for businesses with significant risk exposures, as they can customize their insurance program to suit their specific needs while obtaining comprehensive protection.

Primary insurance, on the other hand, is the first line of coverage, typically covering losses up to a set limit before any excess policies take effect. Liability insurance focuses on coverage for claims made against the insured due to negligence or harm to third parties, not necessarily the issuance of multiple layers. Substandard insurance generally refers to risks that do not meet standard underwriting criteria, and it may not provide the comprehensive benefits associated with layered insurance structures.