Professional Liability Insurance Date: Thu, 09 Sep 1999 13:52:24 -0400 From: "Catherine L. Hill" To: "A - Division Chief and Staff", "B - Branch Chiefs and Offices", "DC - All District Chiefs", "AO - All Administrative Officers" CC: Catherine L Hill , Alice C Dilandro , Vicki Bass , Katherine M Long , "Stephen E Hammond, Deputy ACH/Program Operations, Reston, VA" Subject: Professional Liability Insurance In Reply Refer To: Mail Stop 441 MEMORANDUM September 9, 1999 To: Water Resources Division Senior Staff Branch Chiefs District Chiefs Administrative Officers From: Catherine L. Hill /signed/ Associate Chief Hydrologist for Program Operations Subject: Professional Liability Insurance The following information is provided as a supplement to U.S. Geological Survey (USGS) Instructional Memorandum 99.01 to assist managers, supervisors and team leaders who wish to obtain Professional Liability Insurance. (1) Employees designated as managers, supervisors, or team leaders as defined in section 7103 of Title 5, United States Code are entitled to reimbursement for professional liability insurance. Employees should contact their personnel office to determine whether their position entitles them to reimbursement. (2) The largest provider of professional liability insurance to Federal employees is Wright & Company of Washington, D.C. Employees may contact Wright & Company at 1-800-424-9801 or www.wrightandco.com. USGS is not endorsing this company or its products. (3) Professional liability insurance provides coverage for judgments arising from acts, errors, or omissions committed by an individual within the scope of their employment with the Federal Government. (4) Some professional liability insurance also covers legal costs incurred during administrative proceedings when the Justice Department, which normally represents Federal managers in court, chooses not to represent the employee. (5) Before purchasing professional liability insurance, employees should carefully review the policy. Some policies have limitations on coverage for "willful" acts. Since the Government is authorized to represent employees when the acts are negligent, the policy may cover only a narrow range of acts that the Government is not authorized to cover. Some policies may also cut off legal representation coverage at the appellate stage of litigation. (6) Levels of coverage offered are at $500,000 or $1,000,000. Premiums are approximately $220/yearly for $500,000 and $300/yearly for $1,000,000 of coverage. Employees authorized for reimbursement are entitled to the lesser of 50 percent of the annual premium or $150 per year. (7) To request reimbursement, employees should submit a SF1164 Claim for Reimbursement along with a verification of payment. These claims may be processed locally through the remote data entry program. Object class 121T should be used. If you need more information or have questions on Professional Liability Insurance, please contact Vicki Bass at 703-648-5036 or e-mail (vtbass).