FEDS December 2025 Newsletter
Workplace Disruptions Are Rising – and So Are the Risks for Federal Managers
Growing Concern Across Government
According to reporting from
Federal News Network, recent data from Gallup reveals that federal employees are reporting major workplace disruptions at nearly three times the national average. These disruptions – ranging from increased turnover and hiring challenges to changes in mission priorities and workplace reorganization – are
reshaping how agencies function.
While change is inevitable, the pace and frequency of disruption can create new risks for federal managers and supervisors. When communication breaks down or workloads shift unpredictably, the likelihood of mistakes, delays, or oversight failures increases. For managers, that means greater exposure to disciplinary actions, agency investigations, and even Congressional scrutiny. In today’s uncertain workplace environment, it is important that federal managers have the tools they need to protect themselves – a professional liability insurance (PLI) policy from FEDS Protection can help.
Disruption Breeds Mistakes & Scrutiny
Federal managers sit at the center of organizational change. Whether managing a hybrid workforce, implementing new IT systems, or responding to shifting policy directives, they must ensure compliance, maintain morale, and meet mission goals, all under public and Congressional oversight.
But with disruptions compounding, even well-intentioned decisions can come under the microscope. A hiring freeze may stall a critical project; unclear guidance during a reorganization could lead to perceived favoritism or mismanagement; remote supervision challenges may result in performance or timekeeping disputes.
In these high-stress environments, small errors can snowball into formal investigations or allegations of misconduct. Managers may face questions about their leadership decisions, supervision practices, or adherence to internal policy – even when circumstances were beyond their control.
Increased Legal and Administrative Exposure
Workplace instability doesn’t just impact performance – it heightens exposure to legal, administrative, and criminal risks. Federal managers today face the potential for:
- Administrative investigations by agency Inspectors General or internal oversight offices following complaints tied to workplace disruptions.
- Disciplinary actions for mistakes or misunderstandings, even when made under duress or staffing shortages.
- Criminal investigations, often for release of statutorily protected information or violation of conflict of interest statutes.
Managers who have spent their careers building trust and credibility can find themselves defending good-faith decisions made during chaotic times.
How FEDS Protection Can Help
When uncertainty and disruption are part of the job, a professional liability insurance (PLI) policy from FEDS Protection offers a crucial safeguard.
A FEDS Protection PLI policy provides:
- Civil liability protection — Coverage for attorney’s fees, settlements, or judgments up to your policy limit ($1 million, $2 million, or $3 million) if you are sued personally for actions taken while rendering your professional service.
- Administrative coverage — Legal representation if you face an investigation or disciplinary action tied to alleged errors or omissions made in the scope of your federal position.
- Criminal defense coverage — Protection if allegations of misconduct escalate into criminal investigations or proceedings.
Annual premiums for FEDS PLI start at $290, and most federal managers and supervisors are eligible for up to 50% reimbursement of their premium cost through their agency.
As the federal workplace continues to evolve, disruptions – and the risks they bring – will likely persist. Protecting your career with FEDS Protection ensures that when the unexpected happens, you have experienced legal support on your side.
To learn more, visit www.fedsprotection.com or call (866) 955-FEDS Monday–Friday, 8:30 a.m.–6:00 p.m. EST to speak with a representative.
*This article is 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?
During this month, we want to say Happy Holidays to all federal employees that continue to serve our nation across the country and around the world.
At FEDS Protection, we are immensely proud to be your professional liability insurance (PLI) provider, and we are grateful for your business. Thank you for your federal service. We hope you celebrate the season of giving with friends and family.
Testimonials
"In today’s challenging workplace, federal managers confront a wide array of decisions requiring split-second responses in a 'do more with less' environment. The purchase of professional liability coverage, as offered by FEDS, can provide those managers with a safety net should their decisions lead to forms of legal review. I recommend any manager with the potential of such review to secure a policy of this type for their financial protection."
- Todd Wells, FMA Executive Director
Presentations & 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.