What Does Severability of Exclusions Mean?

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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

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.

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