Liability Insurance for Federal Employees and Contractors


Q: Can you provide me with a brief overview of FEDS Federal Employee Professional Liability Insurance Policy?
  • FEDS PLI pays for legal defense up to $200,000 for any administrative investigation arising out of any act, error, or omission committed by a federal employee within his/her scope of employment. This is any administrative investigation - whether it is OIG, OPR, OSC, RMO, congressional, EEO, or any internal management investigation that could result in a personnel action against you. The FEDS policy provides an attorney throughout the investigation and in the unfortunate event that there is a disciplinary action imposed against you. The FEDS policy will provide an attorney to defend both at the agency level and to the MSPB if necessary. For managers and supervisors, this also includes allegations of harassment, discrimination, retaliation, and wrongful termination. Please contact us or visit the Liability Spotlight pages for more specific information regarding your position.
  • FEDS PLI pays up to $1,000,000 or $2,000,000 (depending on the policy limit you choose) in the event you are sued and found liable for a personal capacity lawsuit, commonly referred to as a constitutional tort or Bivens action. The FEDS policy will appoint an attorney to defend you in the lawsuit. FEDS may also appoint coverage counsel to monitor DOJ's defense of you, or if DOJ is on the fence as to whether it will defend, FEDS may hire coverage counsel to convince DOJ to provide the defense. Note: Unlike similar policies, this defense amount is separate and distinct and not subject to the defense limits of the administrative and criminal provisions.
  • FEDS PLI pays for legal defense up to $100,000 for any criminal investigation or proceeding into any act, error, or omission arising out of the course and scope of your employment. Some of the most common criminal investigations involving a federal employee are due to conflict of interest statutes, misappropriation of federal funds, and release of privacy act or other statutorily protected information.
  • For pre-complaint, preventative, proactive and other matters falling outside the scope of the above liability protections, all FEDS Protection members are entitled to two half-hour consultations with an experienced federal employment attorney at no additional cost. 

Other Distinctive FEDS Policy Features:
  • FEDS PLI policy has NO deductibles.
  • FEDS PLI includes Worldwide Protection at no additional cost for federal employees who are serving outside of CONUS or in other international posts of duties.
  • FEDS PLI includes coverage for managers facing harassment, discrimination, retaliation and wrongful termination allegations at no additional cost. FEDS does not charge additional premium or require you to purchase additional endorsements for Employment Practices Liability Protection.
  • FEDS PLI standard policy exclusions such as Nuclear, Vehicle, Environmental, Pollution and/or violations of Security laws do not apply when it is within the scope of the insured member's employment to work on or within the excluded subject matter area.
  • FEDS PLI provides a 36 month extended reporting period after you retire or otherwise leave federal service - at no additional charge.
  • FEDS PLI provides pro rata refunds for members who retire or otherwise leave federal service. Similar professional liability policies for federal employees contain a 'non-refundable' provision.
  • FEDS PLI benefits are insured by a carrier rated A+XV (Superior) by A.M. Best. Financial strength information available here.
  • FEDS PLI offers qualified law enforcement officers the option to purchase LEOSA-HR218 and State CCW protection. This optional coverage provides civil and criminal coverage for any "legal and justified" act, error or omission directly related to the ‘‘Law Enforcement Officers Safety Act of 2004" as amended by the "Law Enforcement Officers Safety Act Improvements Act of 2010" and codified at 18 U.S.C. § 926B and state Conceal and Carry (CCW) laws. Click here for more information.

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