Professional Liability Insurance Protects Federal Employees Against Legal Risk
When you think of insurance, professional liability insurance (PLI) may not be the first thing that comes to mind. But having such a policy can be a lifesaver for federal workers. The insurance can help with a variety of legal challenges saving federal workers time and money should they be personally sued, summoned as a witness in a high-profile investigation, or even prosecuted. After all, a judgement against a worker could cost them their career, their livelihood, and have numerous consequences on their personal lives.
In a two-part series on FedTalk, Tony Vergnetti, President and Founder of FEDS Protection and longtime partner of Shaw Bransford & Roth PC, discussed the benefits of having such a policy and why it makes sense for federal workers.
In the first episode, Vergnetti was joined by Eric Impraim, FEDS Protection marketing director.
Diamond in the Rough
The program began with a discussion of the importance of professional liability insurance, a benefit which Impraim called a “diamond in the rough.”
Vergnetti said that the workers who need the insurance most are federal managers and executives, intelligence agency personnel, federal law enforcement officers, and anybody making decisions that affect public policy or regulate products.
For example, Vergnetti cited the first impeachment proceedings against President Trump in 2020, adding that foreign service officers involved who had insurance were easily able to obtain counsel due to the affordable coverage, while those who did not had to scramble to find counsel and then pay for it out of their own pocket.
In addition, the hosts pointed out that many agencies will pay for up to half of the insurance policy, which ranges from $290 a year up to $490 a year depending on the coverage level.
Civil Lawsuits
The program then moved into the “trifecta of legal risks” that federal employees face and that professional liability insurance can help mitigate.
The first one is civil lawsuits. Vergnetti pointed out that federal employees can be sued and held liable and that most federal employees do not have absolute immunity for personal capacity lawsuits. In addition, Department of Justice representation is not automatic, and the government will only defend cases that are in the best interest of the United States.
Personal liability insurance will provide legal defense if DOJ declines to offer representation and will also pay damages if there is a judgment where DOJ refuses to indemnify the employee.
While DOJ typically will defend, Vergnetti stated, “Why would you want to be one of the ones who slips through the cracks?”
He also pointed out that having the coverage serves as peace of mind, allowing workers like law enforcement officers to do their jobs effectively.
“We need them to act on what they’re trained on,” stated Vergnetti.
Civil coverage includes up to $1 million, $2 million, or $3 million to satisfy judgements based on coverage level.
Administrative and Disciplinary Matters
The second area of legal risk is administrative and disciplinary matters. In this area, Vergnetti said employees get “the biggest bang for the buck” in having an insurance policy.
The policy will kick in if the employee is involved in any administrative matter, including an Inspector General investigation, an Office of Special Counsel probe, a whistleblower retaliation investigation, EEO complaints, and other complaints.
With the insurance, the employee is covered from the start of the investigation up to the conclusion and beyond, including any appeal to the Merit System Protection Board (MSPB).
Vergnetti reminds federal employees that the duty of the agency lawyer is to the agency, not to individual. But with outside counsel, employees can ensure their attorney is truly representing their interests.
Administrative coverage includes up to $200,000 in attorney fees.
Criminal Matters
The third area is criminal investigations. Vergnetti points out that there are plenty of instances in Title 18, where federal actions can also violate the criminal code and do not require intent, including conflict of interest, unauthorized disclosure of tax information, etc.
Vergnetti points out that the Office of Public Integrity can make it a point to prosecute federal officials so they can “set an example for the rest of the government.”
Criminal coverage includes up to $100,000 to defend against criminal charges.
Sticker Shock
In the second episode of the two part series, Vergnetti was joined by Chris Keeven and Conor Dirks, partners at Shaw Bransford & Roth PC.
Keeven said, “It really is sticker shock that folks sometimes have when they don’t have the insurance and call the law firm,” as it takes a lot of legal work to undue something that the U.S. government wants to do against you.
Investigations Help
A large part of the program focused on how personal liability insurance helps during investigations. Dirks pointed out that attorneys can help employees navigate an Office of Inspector General investigation, adding that you never know when one may happen. That includes getting employees compelled to testify, which then shields federal employees from prosecution.
In addition, the benefits for anyone involved in an Office of Special Counsel (OSC) investigation are numerous. An OSC investigation is highly skilled, lengthy, and non-transparent. “The hardest part about OSC investigations is that without a lawyer there it’s really hard to know what’s going on,” said Dirks.
VA Case
The program ended by reviewing some case examples. Keeven discussed a case involving a member of the Department of Veterans’ Affairs (VA) Senior Executive Service (SES), who was subject to a politically charged investigation.
Keeven stated the allegations were not true and while initial disciplinary actions were sustained, the MSPD sided with the employee, who got his job back without any disciplinary action.
You can stream the show online anytime via the Federal News Network app and listen to the FEDtalk on all major podcasting platforms. FEDtalk is a live talk show produced by Shaw Bransford & Roth P.C., a federal employment law firm. Bringing you the insider’s perspective from leaders in the federal community since 1993.
