Insurance for the Costs of Defending Regulatory Investigations

The costs incurred in connection with a regulatory investigation can accrue quickly and may ultimately run in the millions of dollars. In addition, where the insured entity is unable or refuses to indemnify individual executives for defense costs, an insurance policy may be the only feasible way of funding the defense. In this article, partner Howard Epstein and special counsel Theodore Keyes discuss how the availability of insurance coverage for such defense costs often depends upon the policy definition of “claim.”