Back Up Policy/Layer

An excess of loss layer that provides for further reinstatements of cover after the exhaustion of the automatic reinstatements of the original contract. The policy defines which basic contracts come within its scope and how many reinstatements they contain. Top and drop is a development of the back up layer, but the reinsured who relies upon it runs the risk that the top layer may have been exhausted by earlier calls upon it.

Leave a Reply

Your email address will not be published. Required fields are marked *