Government regulators and agencies are vested with increasingly significant powers to investigateand potentially prosecutecompanies and individuals suspected of wrongdoing.
Such investigations are fraught with insurance implications, including, critically, whether and when such an investigation constitutes a claim under an insureds professional liability policy, thereby triggering a carriers defense obligations.
Not surprisingly, the answer depends on the policys definition of “claim,” and also varies by jurisdiction. Yet, there are common considerations that often guide courts in making such determinations.
While some policies include governmental subpoenas or other investigations in their definition of “claim,” the most common definition is “a demand for monetary or non-monetary relief.”