Which statement best describes excess coverage?

The statement that best describes excess coverage is that it offers additional protection once the primary layer is surpassed. Excess coverage functions as a supplemental layer of insurance that comes into play only after the primary insurance policy has reached its limit. This means that once the claims or losses exceed the amount covered by the primary insurance, the excess coverage steps in to provide further financial protection.

In practice, businesses and individuals often purchase excess coverage to safeguard against potentially large losses that could exceed their primary policy's limits. This type of coverage is especially significant for high-value assets or in industries where risks may lead to substantial claims.

The other options misrepresent the nature of excess coverage. For instance, the notion that it provides coverage below the deductible amount pertains more to how deductibles work rather than the purpose of excess coverage. Furthermore, the exclusive use of excess coverage for life insurance policies is inaccurate; such coverage can apply to various types of insurance, not just life. Lastly, suggesting that excess coverage is solely for properties overlooks its broader application across multiple insurance lines, including liability.