What it does
MI 00 01 is ISO's Miscellaneous Professional Liability (MPL) coverage form, ISO's first policy form for this market, introduced in 2017 with the 06 17 edition. It provides errors and omissions coverage for claims alleging that the insured's professional services caused a client financial loss, on a duty-to-defend basis.
Key provisions
- Settlement: a "coinsurance hammer" clause. If the insured refuses a settlement the insurer recommends, further settlement and defense costs above the recommended amount are shared, with a 50/50 split in the ISO form.
- Coverage enhancements: optional coverage for defense in professional disciplinary proceedings, defense in licensing proceedings and responding to subpoenas, each with limits the insured selects and pays for.
- Exclusions: an exclusion preamble applies to both loss and defense ("We shall not be liable for 'loss' or obligated to defend any 'claim'..."), so excluded claims get no defense, with an exception for the dishonesty exclusion.
Who needs it
Businesses whose services or advice can cause clients financial loss: consultants, IT and business services, property managers, and similar firms that general liability does not protect for economic loss from professional errors.
Quoting and selling notes
- Describe the professional services precisely; coverage follows the services described.
- Explain the hammer clause and the lack of defense for excluded claims; many proprietary MPL forms defend uncovered allegations.
- Decide with the client whether to buy the disciplinary, licensing and subpoena enhancements.
Related forms
Commercial general liability CG 00 01; Micro-BOP professional liability BP 22 02.
