What is residual liability insurance?

Residual liability insurance, often referred to as residual liability coverage, is a type of insurance that provides protection against claims for bodily injury or property damage that occur after a business or individual's primary liability insurance has been exhausted. This coverage is typically designed to protect against unforeseen liabilities or claims that may arise after the primary policy limits have been reached. It can be particularly important for businesses with high-risk operations or those that face potential long-term claims. Overall, it acts as a safety net to ensure that adequate financial resources are available to address any residual liabilities.