Professional Liability Insurance and Eagle

LIABILITY SPOTLIGHT

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IRS Managers & Employees

Over the course of the past few years, numerous events including the "targeting scandal” and the Lois Lerner fallout, have brought an incredible amount of Congressional and media attention and scrutiny upon the IRS and it’s employees. Allegations and accusations have resulted in the need for IRS employees and managers to hire legal representation – if they did not have Professional Liability Insurance (PLI) in place.
FEDS PLI provides legal representation and indemnity protection for those circumstances in which you may have to provide for your own legal defense and/or be held personally liable for acts, errors or omissions arising out of your federal scope of employment.
Federal employee liability insurance provides coverage in three separate categories protecting against administrative, civil and criminal exposures. Basically, FEDS PLI is a defense policy - essentially, you are appointed your own lawyer to counsel and defend against work related allegations, claims and lawsuits.

Administrative & Disciplinary Matters

IRS employees are most at risk for and most likely to need IRS employee liability insurance in the event of administrative and disciplinary matters resulting from an allegation of wrongdoing involving the performance of your official duties such as:
  • A No Fear Act investigation;
  • A UNAX allegation;
  • A 1203 or 1204 investigation;
  • An unauthorized 6104 disclosure;
  • A TIGTA or OSC investigation/complaint;
  • An EEO, whistleblower or ethics complaint;
  • A complaint or allegation of wrongdoing made by the public; or
  • Any other allegation of wrongdoing involving the performance of your official duties.
If you are a manager or supervisor, very often, you must invoke your policy benefits due to employee allegations of:
  • Harassment,
  • Discrimination,
  • Retaliation,
  • Wrongful Termination, and
  • Whistleblower Reprisal.
Civil and Criminal Exposures

IRS employees and managers can also be exposed to civil suits and criminal investigations, albeit at a much lesser degree than the administrative exposures. These civil suits are typically called Bivens actions and the DOJ has the discretion as to whether or not it will defend you in a personal capacity lawsuit arising out of your scope of employment. Some of the most common criminal investigations involving IRS managers and employees are due to conflict of interest statutes, allegations of misappropriated funds, release of privacy act or other statutorily protected information, or an alleged misuse of position or authority. For example, an IRS employee makes an inadvertent disclosure of tax information and an overzealous TIGTA agent investigates it as a willful 6103 criminal disclosure.

FEDS PROTECTION
  • For administrative matters, your FEDS policy will pay for legal defense (up to $200,000) to defend the allegations prepare you for the agency administrative or investigation process, attend the investigative interview with you, and defend you in any resulting disciplinary action at both the agency level and at the MSPB.
  • If you are the subject of a criminal investigation, FEDS will pay for legal defense up to $100,000.
  • If you are sued, as a FEDS policy holder, you would be provided with an attorney to defend you in the civil action. Also, if there were a civil monetary judgment issued against you, your FEDS policy would pay up to $1,000,000 (or $2,000,000 depending on the policy you choose) of the judgment in the event that the U.S. Government declines to indemnify you.
FEDS PROTECTION IS AFFORDABLE:
$1,000,000 Limit; Annual Premium is $290 plus SL tax
$2,000,000 Limit; Annual Premium is $390 plus SL tax

Employees classified as managers or supervisors are eligible for agency reimbursement up to half the cost of this insurance.
Enrollment takes just a few minutes AND payroll deduction is available to all employees, regardless of reimbursement eligibility.

Have questions? Call us at 866.955.FEDS (3337) or contact us online

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