Q: How do I decide which policy limit is right for me?
Selecting the right limit is difficult because you are trying to predict the magnitude of an event that may (or may not) happen. The best practice approach should include consideration of your exposure and the cost of defense.
- If you are a federal employee, analyze your exposure. Are you a manager, law enforcement officer, director, program manger, political, contracting officer, or someone who is responsible for making decisions in the best interest of the public? If so, you are more likely to be pulled into a civil suit (Bivens action or personal capacity suit), or be sued individually yet along with other employees, where DOJ may deny representation. (The $1,000,000 and $2,000,000 federal employee policies provide you with an attorney to defend AND pay damages if you are found liable and the agency will not indemnify.)
- Understand what is meant by civil suit "defense costs”. The defense attorney representing you is critical – and at $400+ per hour for the good ones experienced in federal law – is also very expensive. Unlike other companies, the legal representation for civil suits provided by FEDS is not capped by administrative sublimits of the policy. We provide experienced, knowledgeable, tenacious counsel to defend you all the way up to the $1,000,000 or $2,000,000 limit of the policy. (For federal employees, $100 in additional premium provides you with $1,000,000 in additional civil defense/indemnification).
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