What it does
MP 00 01 is the executive liability (directors and officers) coverage form of ISO's Management Protection program. It protects the organization's directors and officers against claims alleging wrongful acts in managing the company, and is the base D&O form for privately held commercial organizations. Entity securities coverage is added by using MP 00 02 instead, and Side A only coverage is MP 00 08.
Program context
The ISO Management Protection (MP) program is a modular management liability policy: Common Policy Conditions (MP 00 03) shared by separate coverage forms for executive liability (D&O), executive and entity securities liability, financial institutions executive liability, not-for-profit management liability, fiduciary liability and Side A only. Forms lists show the Management Protection forms filed for use in Colorado, Iowa, Illinois, Indiana, Kansas, Minnesota, Missouri, North Dakota, Nebraska, Ohio, South Dakota, Wisconsin and Wyoming. The 10 06 and 05 09 editions are the current ones in forms lists; ISO filed a multistate Management Protection forms revision in 2008.
Who needs it
Closely held and private companies with outside investors, lenders, boards or acquisition plans; companies in regulated industries; any business whose owners want personal-asset protection for management decisions.
Quoting and selling notes
- Ask about ownership, outside shareholders, debt covenants, planned financing or sale, and prior claims or regulatory inquiries.
- Management liability is typically written on a claims-reporting basis: confirm the prior or pending litigation date and offer the extended reporting period endorsement (MP 28 01) when coverage ends.
