Which statement BEST describes a stand alone excess liability policy?

A stand-alone excess liability policy is designed to provide additional coverage above the limits of an underlying primary liability policy. The correct choice accurately describes this type of insurance by indicating that it "follows" the base policy while also having its own limitations and exclusions. This means that when a claim exceeds the coverage limit of the primary policy, the excess policy will respond, but only within the parameters defined in its own terms.

In essence, a stand-alone excess liability policy supplements the existing coverage, addressing gaps or providing added security without being contingent on a specific underlying policy's coverage limits. It is essential for clients to understand that while it extends coverage, it may not cover all kinds of claims due to its specific exclusions and limitations outlined in the policy.

The other choices do not capture the essence of a stand-alone excess liability policy accurately, as they limit the understanding of the coverage scope and flexibility that this type of policy provides.