Tae Andrews Quoted in Law360 Insurance Authority Article, 'Consultant's $7.6M Win Bolsters False Claims Act Coverage'

Calfee Insurance Coverage attorney Tae Andrews was quoted in the October 8, 2026, Law360 Insurance Authority article, "Consultant's $7.6M Win Bolsters False Claims Act Coverage," written by Abraham Gross.

The article discusses a recent decision by a federal court in Virginia that provides meaningful support for corporate policyholders seeking insurance coverage for defense costs and settlements arising from False Claims Act (FCA) investigations and litigation. In the case involving Guidehouse Inc., the court held that the insurer was responsible for paying defense costs and a portion of the company's $7.6 million settlement with the U.S. Department of Justice related to allegations stemming from a cybersecurity incident.

For in-house insurance coverage counsel and risk professionals, the ruling reinforces several important coverage principles, including that courts should focus on the underlying allegations rather than the label of an FCA claim, and that insurers bear the burden of proving the applicability of policy exclusions.

Key Article Takeaways From Calfee's Tae Andrews

According to Tae Andrews, a policyholder-side insurance coverage attorney with Calfee, the decision adds to a growing trend of courts recognizing coverage for FCA investigations and settlements. Tae stated, "This is yet another data point in a growing body of case law finding that there is coverage for False Claims Act investigations and settlements."

Tae also emphasized the court's treatment of the policy's "deliberate acts" exclusion. The insurer argued that the allegations involved intentional misconduct, but the Court rejected that position because the allegations had never been proven and the matter was resolved through settlement without any admission of wrongdoing. Highlighting the significance of the policy's final adjudication requirement, Tae noted that the requirement for a final adjudication "is an extremely important protection for policyholders because in many complaints, the plaintiffs draft them in such a way that they oftentimes include salacious allegations."

Why the Decision Matters

The ruling underscores several policyholder-friendly principles that may be valuable in future FCA and cyber-related coverage disputes:

• FCA investigations and settlements may trigger coverage under professional liability and technology E&O policies.
• Insurers must establish that exclusions clearly apply before denying coverage.
• Allegations alone are generally insufficient to trigger conduct-based exclusions when those exclusions require a final adjudication.
• Courts may focus on the underlying conduct alleged rather than the legal label attached to the claim.

While coverage outcomes will continue to depend on individual policy language and applicable law, the Guidehouse decision provides another favorable precedent for organizations seeking coverage for FCA-related exposures, particularly where settlements are reached without findings of liability or admissions of wrongdoing.

Tae Andrews is an experienced Senior Counsel with Calfee's Insurance Coverage practice group.

Read the full Law360 Insurance Authority article.

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Calfee's Policyholder Insurance Coverage practice group has helped its clients manage and protect nearly $2 billion in insurance assets over the past few years. The team serves corporate insurance policyholder clients in Ohio and nationwide, helping them manage and minimize the risks, losses, and liabilities that pose threats. Calfee's Insurance Coverage attorneys provide advisory and claims services, assisting clients with the placement and enhancement of their insurance policies, reviews of their existing policies, shaping and pursuing claims to get losses paid by their insurance companies, negotiating resolutions to disputed insurance claims, litigating coverage lawsuits against their insurers, and finding solutions for insurance coverage issues in corporate M&A deals. The team has experience with a wide array of policy types, from newer products such as cyber and M&A representations and warranties insurance, to more traditional policy forms such as commercial general liability (CGL), umbrella, excess, property, D&O, professional liability, and EPL policies, to more specialized policies such as builder's risk, liquor, and aviation. Calfee's Insurance practice is ranked by Chambers USA 2026 in Band 1 in Insurance: Policyholder Law in Ohio.

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