Liability Insurance for Federal Employees and Contractors

FEDS May 2025 Newsletter

Changing Return-to-Work Instructions Challenge Federal Managers

 
Required Return
 
In March 2025, thousands of Food and Drug Administration (FDA) employees were ordered to report back into the office, full time. Across the federal government, many agencies have ordered their workforce back into the office, revoking telework status that was often put in place due to the Covid-19 pandemic. However, FDA’s case was unique in that it had been utilizing teleworking practices for more than a decade before the pandemic. Many employees were to report to headquarters in Maryland, where they experienced difficulties on the first day back.  When the thousands of employees showed up to work, they were met with an environment many alleged was not yet ready to handle an influx of personnel – overflowing parking lots, long security lines, and offices were makeshift spaces without chairs and other basic supplies. 
 
Federal managers are expected to handle much of the decision-making involving in-person work, and, in turn, they will take on the bulk of employee complaints, leaving them in a vulnerable position where it is crucial that they have the tools to protect themselves. A professional liability insurance (PLI) policy from FEDS Protection can help. 
 
Alteration Attempt
 
Further complicating matters for FDA managers, it appears the agency has altered their new return-to-work mandate to re-allow telework, albeit only for certain employees. FDA leadership is allowing review staff and supervisors to resume telework at least two days a week. Staffers have also communicated that a similar policy has been offered to reviewers who handle vaccines, biotech drugs, medical devices and tobacco products. This is in response to the fear that the loss of such employees could jeopardize basic functions of the agency and cause key employees to seek employment elsewhere. 
 
Changing Communication
 
The recent changes by FDA leadership have raised the potential for disruption within the agency, with policy changes that could cause a rise in problems for managers. Many employees are already on edge, and employees will look to their managers for answers.
If mistakes are made, managers will be subject to allegations and investigations for their actions taken and instructions given based on the evolving policies. Allegations and investigations can lead to disciplinary actions – which may lead to suspensions and terminations – being taken against you, or personal capacity lawsuits. If an allegation is made against you, it is a necessity, not luxury, to have knowledgeable and effective counsel advocating on your behalf.
 
 Protecting Personnel
 
As the professional liability insurance (PLI) provider endorsed by the leading federal manager associations, FEDS Protection offers federal employee PLI policies with $1 million, $2 million, or $3 million in civil liability protection for attorney’s fees and indemnity costs in the event you are sued in your civil capacity.  The FEDS policy also includes $200,000 of legal representation coverage for administrative actions and $100,000 of coverage for criminal defense costs.  
Annual premiums for FEDS Protection PLI start at $290.  Additionally, federal managers, supervisors, and law enforcement officers are eligible for a reimbursement of up to 50% the cost of their PLI policy through their agency. To learn more about how a FEDS PLI policy can protect you and your career, visit www.fedsprotection.com or call (866) 955-FEDS, M-F 8:30am-6pm to speak directly to a representative.
 
*This article is provided for informational purposes only and does not constitute legal advice.

Are You Leaving Federal Service and Considering Government Contracting?
 
If yes, consider FEDS Protection for your government contracting insurance needs. At FEDS Protection, we also support Federal Contractors by providing insurance coverage specifically tailored to meet the unique needs of today's federal contractors, including Professional Liability, Defense Base Act Insurance, and Foreign Liability coverage.  In our experience, many small businesses need assistance in navigating the insurance portion of a government RFP.
 
The federal government is our specific focus and area of expertise. If you are looking to review your current or upcoming insurance needs, including the unique insurance requirements of any contract involving civilian employees overseas (requiring DBA Insurance and Foreign Liability coverage) please contact us at 866-955-FEDS (3337) or dmoylan@fedsprotection.com.
 
Did You Know? 
 
May celebrates Mental Health Awareness. Established in 1949, the goal of Mental Health Awareness Month is to educate people in the United States and around the world to reduce the stigma and promote mental well-being. Education and empathy play critical roles in encouraging early intervention and advocacy in both children and adults.
 
With the ongoing changes to the federal government, federal employees may be experiencing additional stress. We hope you take this month – and every month throughout the year – to reflect on your mental health and seek resources towards your wellbeing and self-care. 
 
Testimonials

"FEDS has been a big supporter of NACS, including the important information they provide on employee issues. (…) It is helpful to know that we have access to an advocate that we can trust.  I highly recommend FEDS.  They have been very responsive to my needs and I would not come to work without them."
-John Gehrke, Former President, NACS 

Radio & Webinars
 
Contact us if you or your agency are interested in a webinar or 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.


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CA Lic No. 0778135. No claim to any government works or material copyrighted by third parties. Nothing on this website constitutes an offer, inducement, or contract of insurance. Financial strength and size ratings can change and should be reevaluated before coverage is bound. FEDS supports a diverse workforce and is an Equal Opportunity Employer who does not discriminate against individuals on the basis of race, gender, color, religion, national origin, age, sexual orientation, gender identity, disability, veteran status or other classification protected by law. Drug Free Workplace.
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