What best describes a stand-alone excess liability policy?

A stand-alone excess liability policy is designed to provide additional coverage above and beyond the limits of a primary liability insurance policy. When a claim is made that exceeds the coverage amounts of the primary policy, the excess liability policy steps in to cover those additional liabilities. Therefore, the statement that best describes this type of policy is that it covers additional liabilities above the primary policy limit.

While the chosen answer mentions limitations and exclusions that are independent, these aspects are indeed present in most insurance policies, including excess liability. However, the essence of an excess liability policy is its primary function of covering excess amounts beyond the primary policy limits, making the description of covering additional liabilities far more accurate in this context. The other options do not adequately capture the primary purpose of this type of policy; they either describe unrelated specifics or mischaracterize the functionality of excess liability coverage.