Limited severability provision

{
  "id": "MLC-T-INS-002023",
  "term": "Limited severability provision",
  "field": "Insurance and risk management",
  "definition": "A clause in a directors and officers liability policy that states that the wrongful acts or knowledge of one insured individual will not be imputed to other insured individuals for the purpose of applying exclusions. This provision offers some protection to innocent directors or officers from the misconduct of others. It does not, however, prevent the application of exclusions based on the company's knowledge or actions.",
  "subject": "Management Liability",
  "url": "https://mlchart.com/terminology/insurance/limited-severability-provision/"
}