Professional Liability Insurance and Eagle

FREQUENTLY ASKED QUESTIONS

Q: What does a Feds Professional Liability Policy pay for any disciplinary, judicial sanction or administrative investigation?

The FEDS policy pays for legal defense up to $200,000 for any disciplinary or judicial sanction proceeding or administrative investigation into alleged misconduct from any act, error, or omission committed by a federal employee while rendering a professional service.

See Civil Scenarios and Criminal Scenarios also covered by the policy.

Scenario 1

IRS employees responsible for contractual oversight of a system that a government The FEDS policy pays for legal defense up to $200,000 for any disciplinary or judicial sanction proceeding or administrative investigation into alleged misconduct from any act, error, or omission committed by a federal employee while rendering a professional service.contractor fails to deliver in a timely manner. The failure to deliver the system has a significant impact on the agency’s operations. As a result, the agency seeks to hold IRS managers responsible and accountable for the failure of the contractors alleging the managers lacked appropriate oversight and controls. The agency proposes several disciplinary actions against the employees involved to include removal from federal service. As a FEDS policy holder, you would be assigned an attorney to defend you throughout the agency administrative process, as well as any appeal to the Merit Systems Protection Board (MSPB).

Scenario 2

A new manager at the Department of Defense attempts to change the authorized reporting time and the process for alternate work schedules for her employees. Several employees who were upset about the change in their working conditions filed a complaint against the manager with the Office of Special Counsel (OSC) alleging whistleblower retaliation for their cooperation with a recent Office of Inspector General (OIG) investigation involving their office. As a FEDS policy holder, you would be assigned an attorney to defend you throughout the OSC investigation process, to include preparing you and attending the OSC investigative interview with you.

Scenario 3

A traveling member of the public, annoyed about the amount of time it took to get through an airport screening line, filed a complaint with TSA claiming a particular TSA employee was abusive and rude to him. As a result, the agency conducted a management investigation of the incident. As a FEDS policy holder, you would be assigned an attorney to defend you throughout the management investigation process, to include preparing you, and attending the investigative interview with you, and any resulting disciplinary action.

Scenario 4

SSA employees and managers within the Office of Disability Adjudication and Review were the subjects of an OIG investigation for allegedly reproducing evidence from one disability case to another in effort to reduce backlog. As a result of the OIG investigation, the OIG sent a letter to SSA employees and managers notifying them of a potential fine of $5,000 per case under Section 1129 of the Social Security Act, translating to a 3.5 million dollar fine to one supervisor who oversaw more than 700 cases. Section 1129 also has a criminal and administrative (disciplinary) component. If you were a member of FEDS, you would be assigned an attorney to defend you throughout the OIG investigation and any resulting civil or disciplinary process, to include preparing you and attending the OIG investigative interview with you, and negotiating a resolution with the OIG. Your FEDS membership would also entitle you to an attorney to challenge the assessment of any civil fine.

Scenario 5

A manager at the Department of Health and Human Services counsels and issues a reprimand to a problem employee. The employee files a complaint with the EEO office alleging gender discrimination and a complaint with the agency’s Office of Inspector General (OIG) alleging whistleblower retaliation for disclosures she made to her management about alleged fraud, waste and abuse in her office. As a FEDS policy holder, you would be assigned an attorney to defend you in the EEO investigation and any resulting disciplinary action. You would also be assigned an attorney to defend you throughout the OIG investigation process to include preparing you and attending the OIG investigative interview with you and defending any resulting disciplinary action.

Questions: Please call us at 866-955-FEDS or contact us online.

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