Marsh launches insurance coverage for foreign corrupt practices act investigation costs

New york--(business wire)--to assist organizations in managing the rising costs of anti-bribery actions, marsh has created a new form of insurance protection designed to provide coverage for foreign corrupt practices act (fcpa) investigations. developed by marsh’s financial and professional liability practice (finpro), fcpa corporate response is the only insurance mechanism that provides cost of investigation coverage for both individuals and the organization. the insurance policy can be triggered by anti-corruption investigations launched under the fcpa as well as those initiated pursuant to the u.k. bribery act and other foreign regulations to the extent that they parallel the fcpa’s anti-bribery provisions. designed for companies of all sizes that conduct business globally, marsh’s fcpa corporate response keeps existing d&o liability insurance policy limits intact for their intended primary uses, such as securities class action lawsuits. “responding to investigations launched under the foreign corrupt practices act and other anti-bribery statutes can require organizations to dedicate significant time and expense, including legal, accounting, auditing, and consulting costs,” said jack flug, a managing director in marsh’s finpro practice . “loss mitigation strategies, strong compliance, and due diligence are often not enough to address the fcpa risk to organizations and their directors, officers, and employees.” the anti-bribery provisions of the fcpa make it unlawful for a company and its employees, directors, officers, and agents to make a corrupt payment or give anything of value to a foreign government official for the purpose of conducting business. the u.s. department of justice and securities and exchange commission are vigorously conducting hundreds of civil and criminal investigations into alleged fcpa violations by companies and individuals. the number of these investigations—and the costs to defend against them—continues to rise. although directors and officers liability (d&o) policies may cover individuals in the wake of an fcpa investigation, the costs to defend public companies themselves are often excluded from coverage. in addition to insurance coverage, marsh’s fcpa corporate response provides clients with access to diagnostic and assessment services. these services are offered through a panel of consultants fluent in fcpa investigations and related issues. fcpa corporate response is underwritten by an a-rated insurer and offers significant capacity. about marsh marsh, the world’s leading insurance broker and risk advisor, teams with its clients to define, design, and deliver innovative industry-specific solutions that help them protect their future and thrive. it has over 24,000 colleagues who collaborate to provide advice and transactional capabilities to clients in over 100 countries. marsh is a member of marsh & mclennan companies, a global professional services firm with 52,000 employees worldwide and annual revenue exceeding $10 billion, which is also the parent company of guy carpenter, the risk and reinsurance specialist; mercer, the provider of hr and related financial advice and services; and oliver wyman, the management consultancy. its stock (ticker symbol: mmc) is listed on the new york, chicago and london stock exchanges. follow marsh on twitter @marsh_inc.
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