Mercator Risk Services : What Is It - A discussion of Employment Practices, D&O and E&O coverage.

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Insured vs. Insured Exclusions

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Insured vs. Insured Exclusions

Most professional liability policies, including directors and officers and employment practices policies, contain a provision called the insured versus insured exclusion. This provision excludes from coverage any claim brought by one insured against another insured. The following wording is an example of a typical and simple insured versus insured exclusion:

This Policy does not apply to any claim brought by any Insured against any other Insured.

Since insurers will not provide protection for claims brought by an insured against themselves, professional liability policies contain the "insured versus insured" exclusion. This provision excludes claims brought by any insured, say an employee, against any other insured, say the corporate entity. Underwriters are not willing provide coverage for claims by one insured against another because they do not want to be covering a claim that involves inherent conflicts among insureds and the potential for abuse.

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