A master policy purchased by a multinational company to fill the gaps in cover that may arise through differences arising in insurances purchased locally in different overseas countries. The master policy only operates for risks not covered under local policies. It ‘tops up’ the cover to the level desired by the organisation as a whole. See difference in limits. In property insurance it may take the form of an ‘all risks’ cover on a large risk to supplement underlying insurances arranged on a named peril basis.
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Insurance contract that expands or supplements underlying property Insurance written on a named peril basis so as to cover that property on an All Risk basis, subject to stated exclusion designed to prevent overlaps with the underlying coverage.