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ARTICLE · 26 JUNE 2023

Is A CID Or Government Subpoena A Claim?

Foley Hoag LLP
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For many companies, particularly those in highly regulated industries, the receipt of a civil investigative demand (CID) or subpoena from the government can understandably trigger stress.

United StatesInsurance
Creighton Page
Creighton Page
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INSURANCE COVERAGE FOR THE COSTS OF RESPONDING TO A CID OR GOVERNMENT SUBPOENA AND THE IMPORTANCE OF PROMPT NOTICE

Key Takeaways:

  • Companies should promptly notify their insurers as soon as a government subpoena, CID or other governmental inquiry is received.
  • There may be coverage available under companies' D&O, E&O or other liability policies for the potentially substantial costs of responding to a government investigation.
  • Even if there is no coverage for the costs of responding to the government's initial investigation, prompt notice to the companies' insurers protects the company in the future if a related lawsuit or enforcement proceeding is brought one or more years later.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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