Bump-up exclusion

Term · Insurance and risk management · MLC-T-INS-000638

A provision in directors and officers (D&O) liability insurance policies that excludes coverage for claims alleging that the price paid in a merger or acquisition was inadequate or unfairly low. This exclusion prevents coverage for claims where shareholders seek to 'bump up' the acquisition price, as such claims are typically considered a business risk rather than a D&O liability. It aims to protect insurers from covering ordinary commercial disputes.

Table 1. Record
Identifier	MLC-T-INS-000638
Field	Insurance and risk management

Record as JSON

{
  "id": "MLC-T-INS-000638",
  "term": "Bump-up exclusion",
  "field": "Insurance and risk management",
  "definition": "A provision in directors and officers (D&O) liability insurance policies that excludes coverage for claims alleging that the price paid in a merger or acquisition was inadequate or unfairly low. This exclusion prevents coverage for claims where shareholders seek to 'bump up' the acquisition price, as such claims are typically considered a business risk rather than a D&O liability. It aims to protect insurers from covering ordinary commercial disputes.",
  "url": "https://mlchart.com/terminology/insurance/bump-up-exclusion/"
}

Record 402 of 3,682 in Insurance and risk management terminology (MLC-0106). Request the full dataset.