What does Severability of Exclusions mean? Read on to discover the definition & meaning of the term Severability of Exclusions - to help you better understand the language used in insurance policies.
Severability of Exclusions
A term stating that although an exclusion applies to one (or more) insured(s) under a policy, the exclusion does not necessarily apply and therefore bar coverage as respects other insureds. Assume that a directors and officers (D&O) liability policy excluding coverage for fraudulent and criminal acts also contains a severability provision that applies to the policy's exclusions. Under these circumstances, the fraudulent actions of one director would not bar coverage for other directors who were not a party to these fraudulent acts (that bar coverage for the director who committed them).
We hope the you have a better understanding of the meaning of Severability of Exclusions.