Which insurance term refers to coverage that applies when the specific limits of a policy are surpassed?

Excess coverage is a crucial term in insurance that specifically refers to a policy designed to provide protection beyond the limits of an underlying policy. When an insured party experiences a loss that exceeds the coverage limits of their primary insurance policy, excess coverage comes into play. This type of insurance is particularly important for individuals or businesses with significant assets, as it helps to ensure that they are financially protected against large claims or lawsuits.

Basic coverage typically refers to the minimum level of protection offered in a policy. Primary insurance is the first layer of coverage a policyholder can use, while supplemental coverage usually refers to additional protection that can be added to enhance or complement existing policies. However, neither of these terms operates in the same context as excess coverage, which specifically exists to extend beyond base limits, making it the correct answer in this scenario.