Every federal employee has some level of liability exposure, but federal managers may be at a greater risk than they realize. Over the past couple of years, federal managers have seen their professional exposures multiply as a result of fallout from the VA Accountability Act, a court decision burdening managers with a duty to know about the misdeeds of their employees, and a recent Supreme Court decision exposing them to personal liability for alleged violations of the Religious Freedom Restoration Act (RFRA). In our experience, whenever you have something that invokes controversy in the federal workplace, it is often the career executive or manager that bears the brunt of the underlying allegations. Even if the allegations are ultimately proven untrue, the cost of defending against an adverse administrative action, disciplinary proceeding, or civil lawsuit can be devastating. However, Professional Liability Insurance (PLI) from FEDS Protection is available to help protect federal managers and supervisors when the unexpected happens.
HOW DOES PLI HELP FEDERAL MANAGERS AND SUPERVISORS?
When faced with a workplace allegation or investigation, managers need to know their interests will be protected. The cost to defend a decision, action, or inaction can be substantial, even if the defendant is ultimately vindicated. A PLI policy protects managers by:
- Providing Legal Defense: A FEDS PLI policy provides a defense attorney for a disciplinary action, workplace allegation, complaint, or investigation resulting from actions taken in the scope of employment. FEDS will also provide defense if the DOJ determines it isn’t "in the interest of the United States” to represent a federal employee in a civil suit resulting from actions taken in the scope of their employment.
- Paying Damages: A FEDS PLI policy provides indemnity protection if a manager is found liable for a monetary judgment in a personal capacity lawsuit resulting from actions taken in the scope of their employment and the agency chooses not to indemnify, even if the DOJ defends the case.
In recognition of the heightened exposures federal managers face, the federal government requires agencies to reimburse their managers up to 50% of the cost of PLI. The government’s willingness to provide this reimbursement highlights how important it is for federal managers to have PLI.
Just consider these real-world case examples:
BOTTOM LINE
Managers who don’t have a professional liability insurance policy in place may find the financial and professional consequences of an administrative action, disciplinary proceeding, or lawsuit to be devastating. Fortunately, FEDS Protection focuses on protecting federal employees through affordable legal representation and indemnity coverage. Enrollment takes just 5 minutes and a PLI policy through FEDS Protection starts at just $290 per year (before any applicable agency reimbursement)—less than the typical cost of 1 hour of an attorney’s time—providing you with peace of mind should an unforeseen event occur.
If you have questions about your specific risks or the kinds of insurance coverage available, contact FEDS Protection at 866-955-FEDS or visit us at www.fedsprotection.com. Not all policies are created equal, and FEDS Protection’s level of expertise, extensive product knowledge, and world-class customer service have made us an industry standout, trusted by leading federal employee associations across the nation.