If a loss is covered by recoverable insurance, how does the Crime policy respond?

In the context of a Crime policy and recoverable insurance, describing the policy as responding in an "excess" manner means that the Crime policy will only provide coverage after the recoverable insurance has been exhausted. Essentially, the recoverable insurance serves as the primary coverage, and thus, the Crime policy only kicks in to cover the amount of loss that exceeds what the recoverable insurance has paid out.

This ensures that the insured party is not receiving more than the total loss since they cannot collect on both policies simultaneously for the same loss. The necessity for distinguishing the layers of coverage serves to allocate risks and ensure that multiple insurance policies complement rather than duplicate each other. Understanding this hierarchy is key in risk management and claims processing within the insurance industry.