Insurance Coverage for Companies Facing a Government Investigation

Howrey partner Andrew Reidy (DC) and associate Chris Kellett (DC) wrote the article “Insurance Coverage for Companies Facing a Government Investigation,” which addresses four common obstacles to obtaining prompt payment of defense costs.

“After learning the government is instituting an investigation, a company’s first priority is hiring defense counsel. Whether an investigation is commenced by a state government or the federal government, the defense costs associated with such an investigation can be very significant, and accordingly, the next priority is accessing insurance coverage. In many cases, the company’s directors and officers liability (D&O) insurance policies will cover the defense costs relating to the investigation. A policyholder that is mindful of a few issues that commonly arise in seeking insurance coverage for an investigation is in a much better position to obtain prompt payment of defense costs. This article addresses four common obstacles to obtaining prompt payment of defense costs.”