Professional Liability Insurance Date: Fri, 25 Jun 1999 09:30:44 -0400 To: "USGS Employees" From: Eleanor Fisher Subject: Professional Liability Insurance U.S. GEOLOGICAL SURVEY INSTRUCTIONAL MEMORANDUM Instructional Memorandum Number: 99-01 Date: June 18, 1999 Subject: Professional Liability Insurance 1. Purpose. This Instructional Memorandum (IM) establishes policies, responsibilities, and procedures for the use of appropriated funds to reimburse managers, supervisors, and team leaders for part of the cost of professional liability insurance. 2. Authority, A. Public Law 104-208 authorized the use of agency funds to reimburse law enforcement officials, supervisors, and managers up to 50 percent of the premium for professional liability insurance. B. Personnel Bulletin 99-3 delegates the authority to bureau heads to pay up to 50 percent of the premium for a professional liability insurance premium, or $150 per year, whichever is less. 3. Policy. It is the policy of the U.S. Geological Survey (USGS) to reimburse managers, supervisors, and team leaders up to 50 percent of the premium for professional liability insurance, or $150 per year, whichever is less. The reimbursement is available for premiums paid in fiscal year 1999 and subsequent fiscal years. 4. Definitions. A. "Professional Liability Insurance" provides coverage for legal liability for damages due to injuries to other persons, their property, or other damage or loss resulting from or arising out of an act, error, or omission of the covered individual while in the performance of that individual's official duties. It also provides coverage for the cost of legal representation for the covered individual in connection with any administrative or judicial proceeding relating to any act, error, or omission while in the performance of official duties. B. "Supervisor" and "Manager" are defined in section 7103 of Title 5, United States Code. Servicing personnel offices can assist in determining whether an employee is a supervisor or manager. 2 C. "Team Leader" is a person whose position meets the requirements of the Work Leader Grade Evaluation Guide, the General Schedule Grade Evaluation Guide, or similar minimum requirements for leader responsibilities specified by job standards. Servicing personnel offices can assist in determining whether an employee is a team leader. 5. Responsibilities. A. Employees are responsible for obtaining their own insurance and submitting claims for reimbursement through their supervisors, to the Office of Financial Management. B. Supervisors are responsible for determining that the employee is a manager, supervisor, or team leader and for authorizing payment of the claim for reimbursement. 6. Procedures. A. Employees should submit claims for reimbursement on a Claim for Reimbursement for Expenditures on Official Business, SF 1164. The claim for reimbursement must include a copy of the insurance invoice which indicates the amount of the annual premium and the coverage period. B. After verifying the employee's eligibility for reimbursement, the supervisor will sign the SF 1164, annotate the account number to be charged and the object class, and forward the claim to the Office of Financial Management or to the appropriate field office for remote data entry. The object class for liability insurance premiums is 421D. C. The Office of Financial Management or the field office doing remote data entry will reimburse the employee through electronic funds transfer to the employee's financial institution of record. 7. Cancellation. This IM will be canceled one year from the date of issuance or when incorporated into the USGS Manual. (signed) James C. Leupold James C. Leupold Chief, Office of Program Support