Legal Definitions - following-form policy

A following-form policy is a type of insurance policy that adopts the terms and conditions of another insurance policy. For example, if a company has a primary insurance policy and wants additional coverage, they can purchase a following-form policy that mirrors the terms of the primary policy. This type of policy is often used in excess liability insurance.

For instance, if a company has a general liability policy with a limit of $1 million and wants additional coverage, they can purchase a following-form policy with a limit of $2 million that mirrors the terms of the primary policy. This way, if a claim exceeds the $1 million limit of the primary policy, the following-form policy will kick in and cover the excess amount up to the $2 million limit.