This is a trick question. Investigative costs that are a necessary part of defending an officer, director or the Company that has been sued, are generally insured under Directors and Officers (D&O) policies, subject of course to the insurer’s agreement that such costs are reasonable and necessary for a proper defense of covered allegations.  However, when you are referring to internal investigations or governmental or regulatory investigations that occur prior to any charges being levied—the answer is less clear, and sometimes “no”.

After years of declining cost, Workers’ Compensation expense is poised for a jump.  As a result of escalating claims costs, fueled by medical inflation and rising wage replacement costs, Workers’ Compensation insurance rates are increasing.

We live in a world where leading U.S. manufacturers often manufacture very little. They remain masters of design, quality control and distribution.  However, to remain competitive, the actual manufacturing process is outsourced to offshore companies that can deliver at lower costs.

The policies and procedures used in the administration of lenders’ forced placed insurance have recently received increased scrutiny by regulators. While most of the attention thus far has been focused on lenders that have subsidiaries that actually underwrite the forced placed coverage, many of the issues (e.g. unreasonably high rates, communication breakdowns with the borrower and incorrect placement issues) could also give rise to additional regulation and lawsuits against lenders that outsource forced placed services.