Chubb enters MPL marketplace

Rough Notes, Feb 1998

The Chubb Group of Insurance Companies has entered the miscellaneous professional liability (MPL) marketplace with a new nonadmitted, monoline insurance policy. The claims-made policy, which covers wrongful acts of partners, directors, officers, employees and organizations, is available through wholesale insurance brokers.

Initially, Chubb's target markets for MPL include electronic data processors, property managers, employment agency/leasing firms, third-party administrators, management consultants, educators and insurance companies. Although Chubb plans to entertain other types of accounts in the future, it will not write MPL coverage for physicians, attorneys, engineers or architects.

"Chubb's MPL policy provides a monoline solution to the rapidly expanding number of professional consultants and service providers. These knowledgeable specialists are increasingly defending themselves against lawsuits alleging professional errors or non-performance, yet oftentimes the general liability policies they purchase exclude coverage for errors and omissions claims," said John Anderson, assistant vice president of Chubb & Son, Inc.

Chubb offers its new MPL policy with a capacity of up to $10 million. The policy covers prior acts and requires Chubb to defend the policyholder. The minimum premium is $7,500, and the minimum deductible is $2,500.

Although Chubb is marketing MPL as a product for insurance companies, educators and electronic data processors for its wholesale brokers, it offers similar policies to these insureds through retail agents and brokers. Recently, Chubb launched industry-specific policies covering the errors and omissions of insurers and the E&O and employment practices exposures of educators. In addition, Chubb addresses the E&O exposures of electronic data processors through its popular CUSTOMARQ package.

Additional information about Chubb's MPL policy is available from Donna Lovre, Chubb & Son, Inc., Warren, NJ, phone: (908) 903-2107.