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228 FW 1
Professional Liability Insurance

Supersedes Director’s Order 113, 05/26/99

Date:  May 3, 2007

Series: Personnel

Part 228:  Insurance and Annuities

1.1 What is the purpose of this chapter?

1.1 What is the purpose of this chapter? This chapter explains:

 

A. Who we may reimburse for the costs of professional liability insurance, and

 

B. The reimbursement procedures.

 

1.2 What is the policy? For employees who qualify (see section 1.5 below), we reimburse 50% of the annual cost of professional liability insurance or $150.00 per year—whichever is lower.

 

1.3 What are the authorities for this policy?

 

A. Omnibus Consolidated Appropriations Act of 1997 (Pub. L. 104-208, Section 636).

 

B. Insurance and Annuities, Federal Employees’ Retirement System (5 U.S.C. 8401(17)).

 

1.4 What is professional liability insurance? Professional liability insurance provides coverage for:

 

A. Legal liability. Legal liability covers employees when they are performing their official duties for:

 

(1) Damages associated with injuries to other people,

 

(2) Damage to property, and

 

(3) Other damages to people (including their costs for litigation or settlement) resulting from a wrongful act, error, or omission.

 

B. Legal representation. Liability insurance covers the cost of attorney(s) and other legal professionals for administrative or judicial proceedings, including any investigation or disciplinary proceedings, related to any act, error, or omission while employees are performing their official duties.

 

1.5 Who does the Service reimburse for professional liability insurance? We reimburse costs of professional liability insurance for law enforcement officers, supervisors, and management officials (see sections A through C below).

 

A. Law Enforcement Officers. Law enforcement officers are employees whose duties are primarily the investigation, apprehension, or detention of people suspected or convicted of offenses against the laws of the United States.

 

B. Supervisors. Supervisors are employees who have the authority to exercise their judgment to:

 

(1) Hire,

 

(2) Direct,

 

(3) Promote,

 

(4) Reward or discipline,

 

(5) Transfer, and

 

(6) Furlough, lay off, or remove employees.

 

C. Management Officials. Management officials are employees who develop, determine, or influence Service policies.

 

1.6 How do employees get reimbursed for the cost of liability insurance?

 

A. To get reimbursement, you:

 

(1) Complete Standard Form (SF) 1164, Claim for Reimbursement for Expenditures on Official Business.

 

(2)  Attach a copy of your invoice or statement from the insurance company to the SF 1164.

 

(3) Give the form to the approving official for your Program/office.

 

B. We reimburse you through Electronic Funds Transfer.

 

For more information about this policy, contact the Division of Human Capital. For more information about this website, contact Krista Bibb in the Policy and Regulations Branch (PRB), Division of Policy, Economics, Risk Management, and Analytics.

 

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