insured versus insured exclusion
An exclusion found in directors and officers (D&O) liability policies (and
to a lesser extent in other types of professional liability coverage). The exclusion
precludes coverage for claims by one director or officer against another. The
purpose of this exclusion is to eliminate coverage for four types of situations:
(1) employment practices claims, (2) internal disputes/infighting, (3) claims
involving collusion, and (4) claims by organizations against their directors
and officers for imprudent business practices.
Links for IRMI Online Subscribers Only:
PLI VII.E;
D&O Coverage Guide