Five Questions to Ask to Maximize D&O Insurance Coverage of FCPA Claims

Companies spend hundreds of millions of dollars annually to ensure compliance with the FCPA. But, regardless of robust policies and regular training, some employees may take shortcuts in seeking to obtain business abroad. To fully manage the risk of FCPA claims, companies should examine their liability insurance policies – specifically their directors and officers (D&O) policies as they are most likely to respond to FCPA claims – to protect themselves from this risk.

Businesses purchase D&O policies to cover claims made against their directors and officers and, in some instances, the company. However, not all policies are identical, and the protection provided can vary greatly depending on the applicable language. In assessing the possibility and breadth of coverage for FCPA claims, here are a few critical (though not exhaustive) questions a company should consider.