A recent in-depth Smith Currie study of cases and professional articles nationally on insurance coverage of False Claims Act claims identified many important opportunities for coverage of such claims.
False Claims Act claims can be both complicated and expensive to defend, and can even threaten the survival of many companies named as defendants. In some instances, the insurance coverage approach may provide a solution to these very difficult cases. In other situations, insurance may cover defense costs, which can sometimes amount to half of a defendant's overall financial exposure on these claims. Given the seriousness of False Claims Act claims, the significant dollars at stake, and the potential for profound financial impact on your business, allegations of false claims should be reviewed by counsel for the potential of insurance coverage as quickly as possible once you learn of such allegations.