Which statement best describes aggregate excess insurance?

• A. It caps losses from a single occurrence.
• B. It provides coverage after a cumulative per-occurrence loss limit is breached.
• C. It covers unlimited total losses.
• D. It replaces the need for a security deposit.

Answer: (B)

Aggregate excess insurance protects you after losses accumulate to a defined amount over the policy period. It sits above your self-insured retention, kicking in once the total incurred losses reach the pre-set attachment point (the aggregate threshold) and then paying eligible losses up to the excess limit. This means it doesn’t cap a single event, and it isn’t unlimited—there’s an overall limit for the period. It also doesn’t replace a security deposit. The description that it provides coverage after the cumulative losses exceed the attachment point best describes how aggregate excess insurance works.