A contractor has a CGL policy that provides $100,000 per occurrence limit with a $300,000 aggregate limit. The contractor is trying to determine what type of following-form excess liability policy to purchase as follows:

specific excess policy with a $100,000 retention and a $1,000,000 maximum limit

aggregate excess liability policy with a $100,000 aggregate liability policy with a $100,000 aggregate retention and a $1,000,000 maximum limit

During the past year, the contractor has had the following losses:

$25,000

$175,000

$90,000

$150,000

How much would have been paid under the specific excess policy?

How much would have been paid under the aggregate excess policy?

Which policy would you recommend the insured have?