What is severability?
A severability clause will allow coverage to apply separately to each insured under the policy. For example, if one trustee commits an act which would trigger the dishonesty exclusion in the policy, and a lawsuit was brought against all of the insureds, the severability clause would allow the other insureds to have defense. Secondly, the severability clause is utilized quite often when one individual intentionally provides false information on an application. The clause protects the other unknowing individuals in the event of a claim.
