Insured vs insured exclusion in Admitted P&C Products

Coverage intent

An insured vs insured exclusion limits coverage for claims brought by one insured against another insured, subject to carvebacks and exceptions.

Coverage impact

The carvebacks matter. Bankruptcy, derivative demand, employment, whistleblower, and securities exceptions can materially change D&O and management liability protection.

Sample form language

A representative form excerpt for this topic, with the form number and edition date shown the way insurance teams usually identify versions.

Selected form

Amend Insured Versus Insured Exclusion Endorsement

Form #: MS-420845 04/26

Federal Insurance Company

Directors and Officers Liability

KY | May 20, 2026

This endorsement is useful because it shows the carvebacks and defense-cost treatment that determine how much an insured-versus-insured exclusion actually removes.

Insured versus insured carvebacks

(6) Insured versus Insured

brought or maintained by or on behalf of any:
    (i) Organization against any other Insured; or
    (ii) Insured Person in any capacity against any Organization,

provided that this Exclusion (A)(6) shall not apply to:
    (a) a Matter brought or maintained derivatively on behalf of the Organization by one or more securityholders of the Organization or persons who are not Insured Persons, provided such Matter is brought and maintained without any active assistance or participation of, or solicitation by, any Executive;
...
    (e) a Matter brought against an Insured Person by a bankruptcy trustee, creditors committee, receiver, liquidator, conservator, rehabilitator or similar official who has been appointed to take control of, supervise, manage or liquidate the Organization first named in Item 1 of the Declarations;

Selected excerpt from this form.

Notable language points

01Separates organization-versus-insured matters from insured-person-versus-insured-person matters.
02Carves back derivative matters when they are not actively assisted, participated in, or solicited by executives.
03Includes an insolvency carveback for trustees, committees, receivers, liquidators, and similar officials.

Related insurance form pages

Policies

Policies show the coverage architecture, definitions, exclusions, conditions, and duties.

Insured vs insured exclusion in admitted P&C products