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General Business Insurance Government Contracting

Read need-to-know updates, commentary, and analysis on General Business issues written by leading professionals.

California Does Not Bar Defense Coverage For "Willful Acts"

"California prohibits insurers from indemnifying policyholders for their intentional misconduct, as a matter of public policy and as codified in California Insurance Code section 533. This bar on insurance coverage, however,...more

Your Contract Requires You To Be Named as an Additional Insured: Are You?

by Reed Smith on

Last week, New York joined the ranks of several states that may limit a government contractor’s access to insurance coverage despite being added, as set forth in the contract, as an “additional insured” under a prime or...more

Blowing the Whistle on Willful Misconduct: California Court holds that False Claims Act Suits Are Uninsurable Due to Public Policy

by Carlton Fields on

Willful misconduct is uninsurable. It is a fundamental principle of insurance, and it makes sense to both the lay and the lawyerly. But few states go as far as to codify this principle in the insurance code. California is an...more

Federal Court Holds California Insurance Code Bars Duty to Defend Against False Claims Act Violations

by Carlton Fields on

The Central District of California held that Section 533 of the Insurance Code eliminated any potential for coverage for suit under the state False Claims Act. On January 4, the U.S. District Court for the Central...more

Rules of the (International) Road, Brexit, PPP as a New Tool for Argentina, and Keeping Non-U.S. Companies Safe from Suit (Expect...

by Carlton Fields on

- Post-Daimler: Are Non-U.S. Companies Safe from Suit in U.S. Courts? What if the Non-U.S. Parent Registers to Do Business in a State? - Rules of the (International) Road: Choosing and Appointing a Distributor ...more

Court Finds that False Claims Act Suit Alleges Uninsurable “Willful Acts”

by Carlton Fields on

A federal court has ruled that a whistleblower suit under California’s False Claims Act alleged a “willful act” that cannot be covered by liability insurance. In Office Depot Inc. v. AIG Specialty Insurance Company, Case...more

DOL Issues Guidance Regarding Interaction Between Affordable Care Act And Fringe Benefit Requirements Under Service Contract,...

The Davis Bacon Act and the Davis Bacon Related Acts (collectively “DBRA”) and the Service Contract Act (“SCA”) impose additional obligations related to fringe benefits and wages on covered contractors. With the passing of...more

Insurer Actions Cut the Heart Out of Out-of-Network Providers

by BakerHostetler on

Aetna Life Insurance Company recently won a $37 million verdict against a group of Northern California surgical centers, Bay Area Surgical Management, LLC and its affiliates (collectively, Bay Area), for an alleged...more

Insurance Broker Had No Duty to Inform Security Company Insured of Change in Exclusion Language for Alarm Systems

by Hinshaw & Culbertson LLP on

Schlossberg v. B.F. Saul Insurance Agency of MD, Inc., Case No. GJH-13-3076 USDC (Dist. of Maryland, Southern Div.) December 8, 2015 - Plaintiff was the bankruptcy trustee for DTM, a company that provided security guards...more

Compliance With Medicare Secondary Payer Act At Issue In Auto Insurance Case

A recent decision in the District of New Jersey addressed an auto insurer’s obligations to comply with the Medicare Secondary Payer Act. Auto insurers may wish to review their practices and procedures in light of this...more

Insurance Coverage for Actions Under the Foreign Corrupt Practices Act Against Government Contractors

by Gilbert LLP on

Since 2009, enforcement of FCPA actions has significantly increased. The Department of Justice has convicted over 50 individuals, and companies have paid approximately $3 billion in fines and penalties. Government...more

Double-check existing policies for whistleblower coverage

by Reed Smith on

Whistleblower lawsuits under the False Claims Act, also known as qui tam actions, have become more common in recent years. This is particularly so in heavily regulated industries and those in which the government routinely...more

Entrepreneurial Code of the Republic of Kazakhstan

by Dentons on

On 29 October 2015, the RK Entrepreneurial Code was passed. It will be effective (except for some provisions) as of 1 January 2016....more

A Primer to Understanding Wrap-Up Insurance Programs

Whether you are a property owner, general contractor, or subcontractor, understanding wrap-up insurance programs—when to consider one, what they insure, and how they affect the project—is vital to a construction project’s...more

Insurance Recovery Law - October 2015

Unfair Trade Practices Exclusion Doesn't Cover Consumer Protection Suits - Why it matters: An unfair trade practices clause did not bar coverage for a policyholder's subsidiary, an Illinois federal court ruled, ordering...more

The Animas Spill: EPA Liability and Insurance Coverage

by Perkins Coie on

When a contractor for the Environmental Protection Agency accidentally released three million gallons of contaminated mining work wastewater into the Animas River in August 2015, the EPA immediately took responsibility, as it...more

Fifth Circuit Concludes That FCA Claim Was Not Covered By Insurance Policy

by Dorsey & Whitney LLP on

The U.S. Court of Appeals for the Fifth Circuit recently rejected a shipbuilder’s claim against its insurance company seeking defense and indemnification from a False Claims Act suit. See XL Spec. Ins. Co. v. Bollinger...more

Cyber-Attacks Against Government Contractors and the Availability of Insurance Coverage

by Gilbert LLP on

Based on recent cyber-attacks against the United States Office of Personnel Management (OPM) and its subcontractors, USIS and KeyPoint Government Solutions, it is evident that government entities and government contractors...more

Excess and Surplus Lines Laws in the United States: Including Direct Procurement Tax Laws and Industrial Insured Exemptions

by Locke Lord LLP on

Preface: States’ Implementation Of NRRA In 2014: The Nonadmitted and Reinsurance Reform Act (“NRRA”) came into effect on July 21, 2011 as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The...more

Construction Bonds and Subguard Insurance

by Snell & Wilmer on

In virtually all public projects (and in many private projects), the owner requires the general contractor to post a performance bond and a payment bond. Recently, in some cases, general contractors have obtained...more

Pennsylvania Court Holds Faulty Workmanship Not an Occurrence

In its recent decision in Nat’l Fire Ins. Co. v. Gabe’s Constr. Co., 2015 U.S. Dist. LEXIS 37533 (M.D. Pa. Mar. 25, 2015), the United States District Court for the Middle District of Pennsylvania, applying Wisconsin law, had...more

Appellate Court Notes

by Pullman & Comley, LLC on

SC19037 - Brody v. Brody - In this multi-million dollar matrimonial dissolution action, the SCT took the opportunity to clarify Connecticut law on civil contempt. The court set aside prior Appellate precedent and held...more

“Prior or Pending Litigation” Exclusion Bars Coverage for Litigation that Was Unknown to Policyholder

Companies that do business with the federal government, or whose business transactions otherwise involve payments by the government, undoubtedly understand the exposure they face to “whistleblower” or “Qui Tam” lawsuits...more

A Cautionary Tale for Companies With Potential False Claims Act Exposure

A False Claims Act suit can be a company’s worst nightmare, as it may potentially result in large settlements and awards on account of the statute’s trebled damages provision. However, the nightmare for AmerisourceBergen was...more

Eleventh Circuit Reverses Coverage Ruling Under Reinsurance Agreement

by Carlton Fields on

Public Risk Management of Florida, an intergovernmental risk management association that functions as a primary insurer for certain government entities in Florida, ceded some of its risk to One Beacon under a reinsurance...more

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