Primary insurance is an initial and main coverage that is responsible for providing financial protection and paying claims for losses or liabilities. The primary coverage sets the terms and conditions of it, including the limits, deductibles, and exclusions.

The policyholder initiates a demand with their primary insurer. After evaluation, approved petitions are compensated within policy limits. If the loss exceeds coverage, excess insurance may provide additional compensation, if applicable. It is commonly associated with personal protections, such as auto, homeowners, or health insurance, but it can also apply to commercial insurance policies for businesses.

It’s important to keep in mind that multiple coverages can coexist covering the same risk. This should be clarified in the other insurance clause of the primary policy.

When you select the option for a second insurance plan, please note that it operates on the principle of non-duplication of benefits. This means that the second policy will only pay the portion that the first one did not cover.