PROFESSIONAL LIABILITY INSURANCE?
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Anonymous
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My husband is a new employee at DHS. His new work peers have advised him to get Professional Liability Insurance. Apparently, DHS will pay 50% of the premium for it. However, it seems 100% of the cost is related to damages while working. I put the definition below, straight from their handbook. It seems to me that they are trying to force liability on the employee. I know government insurance is always the last payer if any other insurance exists. Thoughts on this? Why would an employee need this? He's not in security - he's in disaster management. It seems ridiculous to me that he should need additional insurance to work as a federal employee.
Professional Liability Insurance: A type of insurance that provides coverage for: A. Legal liability for damages due to injuries to other persons, damage to their property, or other damage or loss to such other persons (including expenses of litigation and settlement) resulting from or arising out of any tortuous act, error or omission of the covered individual (whether common law, statutory, or constitutional) while in the performance of such individual's official duties as a qualified employee; and, B. The cost of legal representation for the covered individual in connection with any administrative or judicial proceeding (including any investigation or disciplinary proceeding) relating to any act, error, or omission of the covered individual while in the performance of such individual's official duties as a qualified employee, and other legal costs and fees relating to any such administrative or judicial proceeding. |
Anonymous
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I'm a fed (not DHS) and we are advised to have liability insurance. Work will not pay 1/2. My coworkers pay about $800 a year for it. From what I've seen, work will protect you and provide you a lawyer if they agree with you. If they don't agree with you, you're SOL.
I do not carry the insurance because it's just too much for me to pay. Obviously we're all doing what we're supposed to be doing and I feel like work should cover us if we are sued. My coworkers are often sued and are named defendants. To cover myself at work I don't do much without getting Solicitor approval in writing. |
Anonymous
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I think that the description that you have posted is really more suited for a Commercial General Liability Policy, which generally covers personal injury and property damage. Companies usually get this coverage if they have an office (it would cover liability if someone slips and falls and is injured on the premises) or if they sell property/services (eg, a faulty product that hurts someone, or a technician installing a product accidentally damages property).
The policy that your DH should look into is better called an Errors and Omissions policy, which covers consultants that make negligent mistakes in their work that causes financial loss to someone else (eg, you miss a deadline). Here is an article that describes things better: http://www.techrepublic.com/article/when-should-consultants-buy-professional-liability-insurance/ |
Anonymous
If you fully read the description, you'll see it's not for a GL policy, because it refers to damages caused "while in the performance of such individual's official duties as a qualified employee[.]" It is very clearly a Professional Liability/E&O description. You can have a claim that falls within E&O coverage that results in property damage or bodily injury, not just financial loss, especially depending on what kind of professional you are. OP, I don't know enough about your husband's particular employment situation, but it may make sense for him to have it. If there is a suit that names him personally, he may be covered under his employer's policy if his actions were clearly within the scope of his job, and he and his employer aren't adverse in the law suit. But if his employer tries to claim he was acting outside the scope of his employment when the harm occurred, you could find yourself in a situation where the employer's insurer refuses to provide any coverage, where the insurer agrees to cover the defense due to underlying factual questions but then refuses to cover a judgment based on the underlying findings of fact, or where your husband would be better off having his own separate defense and settlement strategy due to conflicts between him and the employer. Having his own professional liability policy in place will protect him in these cases. |
Anonymous
| I think you should request a written explanation from Agency and perhaps insist on it. I worked in two agencies (one being DHS) and was never told to get insurance nor did I ever hear of anyone getting it. I was an attorney and didn't have to carry malpractice insurance (required for attorneys) because I was covered by the government. No one I know has ever had to do this. I was not an SES but I was a 15. My husband and father we also feds and have never had this. If you are actually a contractor for DHS, that may be different. I would not buy it unless you are required to do so or advised that it is necessary. I did have to pay for my CLE at one agency while the other used a training budget to host in house training for its attorneys to help with CLE. So agencies do vary but buying professional liability insurance is not something I think you need unless you are told to get it. |
Anonymous
| ^^ This was my experience and I was general counsel at an agency. But maybe times have changed and the professional liability insurance is now suggested or recommended. News to me if true. |
Anonymous
| Check out FEFS and Wright USA for professional liability insurance. Pretty inexpensive. |
Anonymous
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www.fedsprotection.com This is so so very worth it. It will pay for your legal representation if you are sued in your personal capacity (which absolutely can happen to law enforcement officers.) It will also pay for legal representation should you become subject to any disciplinary action, or are if you are named in an EEO complaint. |
Anonymous
I totally agree. Also, as a PP noted, if the government agrees with your actions, they'll pay for your defense. If not, you're SOL and on your own. I've been with 5 different federal agencies over the last 25 years and only carried it at one agency because I'd seen how leadership scapegoated staff. Most all the attorneys, COs and CORs that I knew also carried it - basically anyone who had a decision making role, certified or obligated the government. While at that agency, I also joined the union for the first time in my career. I'm so glad I got out. |
Anonymous
| Another Fed here, all our managers have this and our agency pays 50% of the cost. It's a pretty standard arrangement in the Federal Govt. There are many times when your employer will represent you but it really depends on the circumstances and how you are named in any lawsuit. |
Anonymous
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Didn't see this the first time - and the spam should be removed soon.
Bottom line - an agency's lawyers are there to protect the agency. Your lawyer is there to protect you. Sometimes the two will overlap, but if they don't you need your own lawyer. My agency pays the entire premium if you are in an eligible category. I have Wright and it's somewhere around $300 a year. |
Anonymous
| What are the typical professions of Feds who carry insurance. I am a PE for the Feds but I don't stamp drawings. Wondering if I need coverage. |