Endorsement is a written agreement attached to a policy to add or subtract insurance coverage. Once attached, the endorsement takes precedence over the original provisions of the policy. Excess insurance is property, liability or health coverage above the primary amount of insurance. Coverage differs from Umbrella Liability Insurance, in that excess insurance sits above one specific policy. Reinsurance is a form of insurance bought by insurers to spread their own risk and reduce the amount of actual loss from claims.
Reinsurance provides many benefits to the insurance company.
In particular, it minimizes wide fluctuations in underwriting results caused by large losses. Tail coverage protects the insured against losses from an event that occurred during the policy period, but was reported after the policy expired. Umbrella liability insurance is excess liability coverage above the limits of basic business liability insurance policies. The umbrella policy can also fill gaps in coverage under the basic liability policies. Underwriting is a process of analyzing and evaluating insurance risks to determine if coverage will be offered, and, if offered, determining the premium rate for the risk.