A formal inquiry and request for information was sent by the Justice Department to a school insured through McGriff. The inquiry notice was based on the Sherman Antitrust Act, a federal law that prohibits contracts, combinations, or conspiracies “in the restraint of trade or commerce”. The Justice Department alleged the private school had decided to cease offering certain classes, thereby restraining student opportunities. The client contacted their insurance carrier for legal assistance, but was denied coverage when the carrier contended an inquiry did not meet the definition of a claim. Concerned, the client contacted their McGriff agent for assistance.
The agent enlisted the help of a technical claim specialist with McGriff Risk Solutions. Following a review of the claim, the specialist drafted a letter to the carrier’s adjuster. The specialist explained the ramifications of a Justice Department inquiry and how it should be handled similar to an inquiry from the U.S. Employment Opportunity Commission, of which the insurer was much more familiar. The specialist asked the carrier to reexamine their position since the duty to defend the client is triggered by the potential for charges to be filed as a result of an inquiry or investigation.
The insurance carrier withdrew their denial and agreed to defend the client up to the maximum sublimit on the policy. The advocacy provided by the McGriff technical claim consultant has potentially saved the client $100,000 in legal fees.
Disclaimer: Individual results will vary.
Insurance products and services offered through McGriff Insurance Services, Inc., a subsidiary of Truist Insurance Holdings, Inc., are not a deposit, not FDIC insured, not guaranteed by a bank, not insured by any federal government agency and may go down in value.
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