ACE Group today announced the release of a new advisory entitled “Managing the Growing Risk of FCA Liabilities.” The paper details the increase in liability risk as government agencies use the False Claims Act (FCA) to aggressively enforce a complex set of regulations that govern insurance programs, and emphasizes the need for health care organizations to take proactive steps to address this evolving exposure. Co-authored by Keith Lavigne, Senior Vice President, ACE USA Professional Risk, and Scott Williams, Assistant Vice President, ACE USA Professional Risk, the paper is the second in a series of papers developed by ACE to highlight the increased exposures faced by health care organizations.
“Billions of dollars have been collected under the FCA via a multitude of actions brought directly and indirectly by government agencies,” said Mr. Lavigne. “The cost of an FCA action can go beyond damages and penalties. Senior executives can face criminal charges, and the publicity can harm an organization’s credibility and reputation. These costs can take a serious toll, even putting an organization’s future into question.”
“As part of their risk management strategy, providers need to understand the importance of a comprehensive insurance program and how insurance can help them work through the difficulties of FCA related matters,” added Mr. Williams. “Management liability insurance policies, specifically D&O policies, typically provide some level of protection against FCA liability, but it is essential that health care organizations ensure they have explicit and state-of-the-art coverage.”
To access the paper, please visit our website. The material presented in this report is not intended to provide legal or other expert advice. It is presented as information only. Readers should consult legal counsel or other technical experts, as applicable, with any specific questions they may have.
ACE’s Professional Risk division, part of ACE USA, is staffed by a specialized team of underwriters and provides management liability and professional liability products throughout the U.S. In response to the ever-increasing number of exposures faced by Private companies and Not-For-Profit and Health Care organizations, ACE Professional Risk offers a suite of management liability products exclusively designed to protect these entities. A number of primary coverages are available in either a package policy or on a standalone basis, including the following:
- Directors and Officers Liability Insurance
- Employment Practices Liability Insurance
- Fiduciary Liability Insurance
- Crime Insurance
For more information about ACE’s Professional Risk division and its range of products and services, please visit our website.
ACE Group is one of the world’s largest multiline property and casualty insurers. With operations in 54 countries, ACE provides commercial and personal property and casualty insurance, personal accident supplemental health insurance, reinsurance, and life insurance to a diverse group of clients. ACE Limited, the parent company of ACE Group, is listed on the New York Stock Exchange (ACE) and is a component of the S&P 500 index. Additional information can be found at www.acegroup.com.
- ACE Group
Carla Ferrara, 215-640-4744