What type of excess coverage is appropriate for claims above self-insured retention limits?

The appropriate type of excess coverage for claims that exceed self-insured retention limits is specific excess coverage. This type of insurance is designed to provide protection against losses that surpass the defined retention limit for individual claims. It is structured to kick in when a claim amount exceeds a certain threshold, allowing the insured party to manage risks effectively above their self-insured retention.

Specific excess coverage is particularly valuable because it targets individual claims, ensuring that once a specific loss exceeds the retention level, the insurer becomes responsible for covering the additional amounts. This effectively helps organizations mitigate the financial impact of significant or catastrophic losses.

In contrast, aggregate excess coverage would handle overall losses over a specified period rather than focusing on individual claims, making it less suited for this scenario where the focus is on surpassing a specific retention limit for a singular event. General liability coverage primarily covers third-party bodily injury and property damage claims, but it does not address excess coverage concerns directly. Business interruption coverage is focused on protecting against income loss due to operational disruptions, not claims exceeding retention levels.