In the Headlines
February 6, 2017

Whistleblower bounties may continue

Business Insurance

The U.S. Securities and Exchange Commission is unlikely to dismantle their whistleblower program despite President Trump's criticisms of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which created the program. Similarly, the costs that accused corporates face while under investigation are likely to remain in place.

"Just like any other claim, most claims against directors and officers that come under the D&O policy allege fraud, and unless and until there’s a final adjudication in the underlying proceeding, the policy should provide a defense," noted Insurance Law Attorney Thomas H. Bentz Jr. "The first issue is when you find out about it. A lot of these things are done under seal, and that can be a real problem because these policies are all done on a claims-made basis."

READ: Whistleblower bounties may continue

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