We just released Episode 49 of the False Claims Act Insights podcast where Lorinda Holloway and I talk about whether insurance can cover False Claims Act investigations and settlements.
Many executives assume fraud exclusions make the answer no, but a recent federal court decision involving government contractor Guidehouse suggests otherwise. We walk through how Guidehouse obtained coverage for its $7.6 million settlement, its defense costs, and the costs of responding to two civil investigative demands, and why the FCA’s “reckless disregard” standard kept the fraud exclusion from defeating coverage.
Lorinda also explains the three policy provisions to check now, why notifying your carrier early matters, and how settlement language can affect coverage. If your organization receives federal funds, this episode offers practical steps you can take before a CID arrives.