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Insured vs. Insured Exclusion

What is an Insured vs. Insured Exclusion?

Insured vs. Insured Exclusion may refer to a specific type of exclusion in a Directors and Officers Liability Insurance policy. This exclusion is used to define the circumstances in which directors and officers of a company are not covered under the policy. Generally, an Insured vs. Insured Exclusion excludes coverage for claims brought against directors and officers by other directors and officers of the same company. This exclusion is often referred to as an intra-insured exclusion.

Insured vs. Insured Exclusion in More Detail

The purpose of the Insured vs. Insured Exclusion is to protect the insurance company from claims that may arise from directors and officers of the same company suing each other. It provides a clear definition of who is not covered by the policy and prevents directors and officers from using the policy to their own advantage. It also ensures that the insurance company is not liable for claims that arise from internal disputes between directors and officers of the same company.

The Insured vs. Insured Exclusion is an important part of any D&O policy because it helps to protect both the insured and the insurance company from certain types of claims. It helps to limit the insurance company’s liability and protects the insured from the potential financial burden of defending themselves against an internal dispute. It is important to understand the details of this exclusion before purchasing a Directors and Officers Liability Insurance policy.

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