Whistleblower lawsuits under the False Claims Act, also known as
qui tam actions, have become more common in recent years.
This is particularly so in heavily regulated industries and those
in which the government routinely pays or reimburses costs, such as
health care, pharmaceuticals, finance, construction and defense.
Companies defending themselves against government investigations
and FCA actions often have the insurance coverage they need —
but frequently overlook it.
Our group recently authored an article in Business
Insurance discussing insurance coverage for FCA investigations
and actions. As discussed at greater length in the article,
businesses facing whistleblower suits and government investigations
often have coverage in standard policy types, including employment
practices liability (EPL), errors and omissions (E&O),
directors and officers (D&O), and commercial general liability
(CGL) policies. For instance, EPL policies, which cover losses from
claims
