Federal Managers and Risk in Federal Performance Management

For many years, federal managers have understood that strong performance management is key to a well-functioning government. Setting expectations, evaluating results, addressing underperformance, and rewarding excellence are not peripheral tasks; indeed, they are core leadership responsibilities. Yet the legal complexity and procedural rigor surrounding federal personnel actions have made these responsibilities some of the most difficult aspects of federal management.

Recently, the Office of Personnel Management (OPM) issued a memorandum for managers and supervisors that sought to provide an overview of the scope of personal liability they are exposed to while engaging in performance management.

OPM’s guidance noted that when managers and supervisors issue ratings, implement performance improvement plans, or propose adverse actions, that action is ultimately taken by the agency. These are official acts, and any resulting legal challenge is typically directed at the agency, not the individual acting within the scope of authority.

For many supervisors, this clarification is timely. It arrives amid renewed emphasis on accountability and more rigorous performance reviews across the federal government. Signals encouraging stricter evaluations have heightened anxiety among managers who must balance mission demands, workforce morale, and compliance with an intricate legal framework. Even well-supported actions can prompt grievances or appeals, requiring substantial time, documentation, and resilience.

Moreover, the guidance did address scenarios in which a manager or supervisor is sued personally for actions taken within the scope of their employment. In these cases, the Department of Justice (DOJ) would typically provide representation—though ultimately, that decision is up to the discretion of DOJ.

As the OPM memo stated, given this possibility, many managers across the federal government choose to secure themselves an additional layer of protection with professional liability insurance (PLI). In recognition of the unique risks and exposures associated with supervisory roles, federal law permits partial reimbursement of premiums for federal managers and supervisors.

As performance expectations continue to evolve, all federal managers and supervisors must be equipped not only with clear authority, but with confidence in the protections surrounding their decisions. OPM’s guidance offers important clarity. Appropriate safeguards, including professional liability insurance, help ensure that leaders can focus on strengthening accountability and advancing the federal mission without undue concern about personal risk.

FEDS PLI for Federal Executives

FEDS Protection offers professional liability insurance (PLI) designed specifically for federal managers, including:

• $1 million, $2 million, or $3 million per incident in civil liability coverage for attorneys’ fees and indemnity costs
• $200,000 per incident for legal representation in administrative and disciplinary actions
• $100,000 per incident for criminal defense costs

Annual premiums start at $290, and eligible federal managers may receive agency reimbursement of up to 50% of their premium, subject to agency policy.

To learn more, visit www.fedsprotection.com or call (866) 955-FEDS, Monday–Friday, 8:30 a.m.–6 p.m. ET.

This article is for informational purposes only and does not constitute legal advice. Coverage is subject to policy terms, conditions, limitations, and exclusions.

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Testimonials

“I highly recommend that all executives purchase their professional liability insurance from FEDS Protection and avoid a 'should have, could have, would have' situation like mine.”

- Katherine Coffman, Executive Director, Former Human Capital Officer

Presentations & Webinars

Contact us if you are interested in a webinar or receiving brochures that provide federal employees with best practices on how to protect themselves with a federal employee professional liability insurance policy like those offered by FEDS Protection. FEDS Protection webinars are a valuable resource for learning more about the specific professional exposures of federal employees, PLI in general, and the FEDS Protection program. Check out our library via the link below to access content that speaks to your position in the federal government.