Insurance Services Office, Inc. (ISO) has unveiled a new line of business to cover the liability and other management-related exposures of a company.
The new line, called the ISO Management Protection Program, will initially provide policy forms, rules and loss costs for for-profit corporations. A program for not-for-profit companies and financial institutions is being developed for availability shortly.
The ISO Management Protection Program is flexible. A mandatory executive liability coverage – also known as directors and officers liability – may be combined with employment-related practices liability (EPL), kidnap/ransom and extortion (KR&E) and/or Crime and Fidelity coverages.
The executive liability component of the program protects the personal assets of individuals while managing a corporation or serving on its board of directors. Moreover, a corporate reimbursement coverage applies to any loss from claims for which a company is legally obligated to indemnify its directors or officers when those claims stem from their wrongful acts. The mandatory executive liability coverage comprises two separate coverage forms that operate on a claims-made basis. The executive liability coverage form is primarily designed for private, for-profit corporations while the executive liability and entity securities liability coverage form applies to directors and officers of publicly traded companies.
“No two insured companies have identical exposures, and so no ‘one-size-fits-all’ insurance coverage protects directors and officers from liability while discharging their duties,” Domenick Yezzi, Jr., ISO’s vice president for specialty commercial lines, said. “Our new Management Protection Program provides flexibility, so insured companies can choose coverages that meet their specific circumstances and business needs.”
ISO has filed the new program for regulators’ approval in 54 jurisdictions, with a May 2003 effective date for adoption by insurers.
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