Oh-FAC! There's Coverage For That?

Policyholders can include violations of economic sanctions among the laundry list of risks their companies face. Economic and trade sanctions are administered by the Office of Foreign Assets Control ("OFAC"), a little known agency within the U.S. Department of the Treasury. The sanctions that OFAC administers and enforces include broad embargoes of Crimea, Cuba, Iran, North Korea, Sudan and Syria, as well as restrictions against doing business with designated individuals and certain of their affiliates. As recent events show, failing to abide by these sanctions can result in significant liability. And where there is liability, policyholders should consider whether there may be insurance coverage.