Professional liability insurance gives federal employees affordable protection

INSIGHT BY STARR WRIGHT USA

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Professional liability insurance gives federal employees affordable protection

Federal employees are turning to a unique form of insurance to protect their families and careers. Federal employee professional liability insurance, a form of ...

April 16, 2018 1:05 pm

This content is sponsored by Starr Wright USA

Federal employees are turning to a unique form of insurance to protect their families and careers.

Federal employee professional liability insurance, a form of insurance that covers legal fees and liability costs for current and former federal employees, is the latest tool for federal government workers to protect their careers, reputations and families. In the current legal climate, FEPLI fills an important niche.

The U.S. Equal Employment Opportunity Commission announced in February that about 90,000 workplace discrimination charges were filed in fiscal year 2017. These cases alone secured more than $400 million for claimants.

If those numbers seem high, it is because any federal employee can be the target of a lawsuit for actions that stem from their job performance. Coworkers, special interest groups or even members of the public can bring actions or file complaints against a federal government employee.

But the charges do not stop there. A federal government employee can be sued for everything from an accusation of misuse of government funds to an Equal Employment Opportunity complaint.

While it seems natural that the federal government would help an employee defend themselves from potentially devastating lawsuits, the Department of Justice may choose not to provide an employee with legal defense, leaving the defendants helpless.

However, congress recognized the necessity of FEPLI in 1995 by passing section 642 of Public Law 106-58, requiring agencies to reimburse up to 50 percent of FEPLI premiums to certain qualified employees.

According to Darrell Weber, vice president of FEPLI provider Starr Wright USA, professional liability insurance is a necessity for federal employees.

“All federal employees are at risk of being targeted by expensive claims,” Weber said. “Whether you are an entry-level employee or an upper-level manager, you can be targeted by a career-ruining claim.”

Plans for FEPLI at Starr Wright USA start at about 300 dollars per year with liability limits capping out at $2 million. The insurance covers three types of protection against liability: administrative, civil and criminal.

Administrative complaints often include EEO actions, OIG/OSC investigations, whistleblower complaints or ethics investigations. In these cases, FEPLI coverage may provide the employee with legal advice and representation through the investigative or disciplinary process.

“We offer our services to all current and former federal employees because we know how important our services are to their peace of mind,” Weber said.

FEPLI was invented by former federal employee Frank Wright in 1965. Federal contractors are now eligible for professional liability insurance. For more information, visit WrightUSA.com.