Professional Liability Insurance
Frequently Asked Questions
Why do you need this insurance?
Because without it, you probably don’t have the coverage you think you have — much less the coverage you actually need. Remember, the Federal Employees Liability Reform and Compensation Act covers you only if it is decided that you were acting within the scope of your employment and it is in the interest ff the United States Government to defend you. While the federal government can choose whether or not to defend you, it will not cover monetary damages. Furthermore, regulatory changes now mean employees may be held personally accountable for actions taken while on the job.
In addition to being the lowest cost coverage you can find, this insurance boasts a number of attractive features: the highly rated A+ carrier; coverage for prior acts (unless you have knowledge that a claim may arise); worldwide coverage; and a four year discovery period.
What about administrative legal defense?
More and more people these days seems to be invited to appears before Congressional Investigative Subcommittee Meetings, or summoned before special investigative staff councils, in addition to such things as agency disciplinary actions or accountability boards. Administrative Defense coverage helps address these costly inconveniences.
What is covered?
Wrongful acts, errors and omissions committed or arising within the scope of your service as an employee of the United States Government, such as:
- Bodily injury
- Property damage
- Wrongful imprisonment
- invasion of privacy
- Obstruction of justice
- Acts without appropriate authority
- Violation of Omnibus Diplomatic Security and Anti-terrorism Act
Administrative Legal Defense:
The Company will provide counsel and the cost of defense and monetary penalties arising out of any disciplinary proceedings, for any act, error or omission in professional services rendered or which should have been rendered in your capacity as a full-time employee of the United States Government. Of course, we will not be liable for defense costs or fines if the final disposition determines that the act, error or omission was criminal.
Four Year Discovery Period:
Coverage extends after expiration of your policy for a full four years for acts committed or alleged to have been committed prior to expiration as long as your policy has not cancelled for non-payment of premium or replaced.
Acts prior to policy inception, from your first day or service in the federal government, are also covered as long as you had no knowledge, prior to signing the application, of any any claim or action, error or omission which might result in a claim or action.