Companies should review their directors and officers liability insurance policies for entity investigation coverage following the Aug. 1 launch of U.S. Department of Justice’s whistleblower rewards program, experts say.
The substantial financial incentives offered to whistleblowers could lead to more investigations, but D&O policies may not cover or offer only limited coverage for related expenses, they say.
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Policyholders should also attempt to narrow the breadth of “insured v. insured” exclusions in their D&O policies, which can be done through exceptions for whistleblower claims and/or limiting the exclusion to apply only to claims brought by the insured entity, said Chicago-based Seth Lamden, an insurance recovery partner at Blank Rome LLP.
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"DOJ Whistleblower Program Puts Investigation Coverage in Focus," by Shane Dilworth was published in Business Insurance on September 3, 2024.
