What does "excess lines insurance" refer to?

Excess lines insurance refers specifically to policies that provide additional coverage beyond the limits of a primary insurance policy. This type of insurance is typically used when the standard markets are unable to offer the necessary coverage, often due to the unique or high-risk nature of certain exposures. As a result, businesses or individuals may seek excess lines coverage to protect themselves against significant potential losses that exceed the limits of their primary insurance policy.

The key aspect of excess lines insurance is its ability to fill in the gaps and provide additional protection where traditional insurance falls short, thereby ensuring that policyholders have adequate coverage for their specific needs. This characteristic distinguishes it from standard insurance policies, which may not cater to high limits or unique risks. Therefore, the answer that aligns best with the definition and function of excess lines insurance is the one describing additional coverage that exceeds the limits of primary insurance.