Primary Coverage

What Does Primary Coverage Mean?

Primary coverage is insurance that pays out regardless of whether other insurance policies are covering the same risk. It contrasts with secondary coverage, which only pays out after the primary insurance policy has been exhausted. Many people purchase secondary coverage to supplement their primary coverage.

Insuranceopedia Explains Primary Coverage

Primary coverage is often sufficient to cover total losses, but this is not always the case. For instance, certain medical expenses can be extremely costly and may exceed the limits of primary coverage. In such situations, the policyholder will be required to pay the remaining amount out of pocket unless they have secondary insurance coverage. This is also why drivers often look at how much liability insurance they actually need rather than defaulting to state minimums, since a serious accident can blow past a primary policy’s limits quickly. Umbrella policies are a popular option for obtaining secondary coverage, particularly for expenses like medical costs, and businesses often add a commercial umbrella insurance policy on top of their general liability for the same reason.