1. Forms
2. MP
3. MP-04-08

What the Form Is

The MP 04 08, titled "Coverage Extension–Wrongful Personal Injury Acts," is an endorsement to a Management Protection insurance policy. Its primary function is to broaden the policy's definition of a "wrongful act" to specifically include a list of personal injury offenses. These typically include acts such as libel, slander, false arrest, wrongful detention or imprisonment, malicious prosecution, wrongful entry or eviction, and plagiarism or infringement of copyright, title, or slogan. This form modifies the underlying coverage to provide protection against claims arising from these enumerated personal injury acts.

Classes of Business It Applies To

This endorsement is relevant for a wide range of commercial entities that carry Management Protection Liability insurance, often referred to as Directors and Officers (D&O) Liability or Executive Liability insurance. It is particularly pertinent for businesses with significant public interface or communication activities, such as:

• Media companies (publishers, broadcasters)
• Marketing and advertising agencies
• Technology companies involved in content creation or platform provision
• Retail businesses (risk of false arrest or wrongful detention claims)
• Real estate and property management firms (risk of wrongful entry or eviction claims)
• Any organization whose executives or employees make public statements or publish content where accusations of libel, slander, or plagiarism could arise.

For example, a company that runs a popular blog and social media channels might want this endorsement to cover potential claims of libel stemming from its online content. Similarly, a retail store chain could benefit from this coverage in case of allegations of false arrest against its security personnel.

Special Considerations

• Attachment to Base Policy: This endorsement is not a standalone policy and must be used in conjunction with a primary Management Protection coverage form, specifically MP 00 06 as indicated.
• Premium Impact: Adding this endorsement typically results in an additional premium, as it expands the scope of coverage and therefore the insurer's potential exposure.
• Scope of Personal Injury: It's important to carefully review the specific personal injury acts listed and defined within the endorsement, as coverage will only apply to those enumerated.
• Exclusions: The underlying policy's exclusions, as well as any exclusions specific to this endorsement, will still apply and may limit coverage for certain personal injury claims. For instance, intentional acts committed with malicious intent might still be excluded.

Key Information for Agents and Underwriters

• Agents: Agents should discuss this endorsement with clients who have identifiable exposures to personal injury claims. This includes assessing their advertising activities, public relations, security procedures, and content generation processes. It helps address potential coverage gaps for these specific torts that might not be adequately covered under a standard definition of "wrongful act."
• Underwriters: Underwriters need to evaluate the increased risk associated with adding these personal injury perils. This involves a thorough assessment of the applicant's industry, past claims history related to personal injury, internal controls and procedures for managing communications (e.g., legal review of marketing materials), and employee training (e.g., for security staff). The insured's reputation management practices may also be a relevant underwriting consideration. Pricing for the endorsement should be commensurate with the perceived level of risk.