What does a layered property coverage approach aim to combine?

The layered property coverage approach aims to combine insurance policies with different levels of coverage. This method is particularly useful for addressing the unique needs of complex or higher-value properties where a single policy might not provide adequate protection. By layering policies, insured entities can customize their coverage to effectively manage various risks, ensuring that certain layers of coverage are designed to respond to specific types of losses or exposures.

This approach allows for flexibility and control over risk management strategies, enabling policyholders to structure their coverage to suit their financial needs and operational risks. By using multiple policies with varied coverage limits, businesses can optimize their insurance portfolio to cover an array of potential loss scenarios.