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Professional liability insurance

Sometimes management officials, supervisors, and law enforcement officials are accused of wrongdoing at some point in their career. When disputes grow into lawsuits, Professional Liability Insurance protects you by covering the legal costs and legal liability for damages that may arise from performing your official duties.

This gives you some basic information about who can be reimbursed for Professional Liability Insurance premiums, and how to take advantage of it.

Professional Liability Insurance Essentials

  • Professional Liability Insurance provides coverage for legal fees and legal liabilities resulting from the performance of a covered employee’s official duties.
  • Only supervisors, management officials, and law enforcement officers are eligible to be reimbursed for Personal Liability Insurance premiums. If you’re eligible, you may be reimbursed for up to one-half of the total premium costs, not to exceed $150.00 per calendar year.
     
  • The reimbursement can be in a lump sum after all premiums are paid or through a bi-weekly deduction from your salary payment and the reimbursement is tax exempt exempt.

Your Operating Unit is responsible for establishing a point-of-contact (POC) who can help you in purchasing the insurance and getting reimbursed for the premiums.

How to Get Reimbursed

Prepare the Professional Liability Insurance Reimbursement Claim Form, CD-138, and make sure to turn it in along with all required documentation to your Servicing Human Resources Office. If you’ve paid the full amount due for your Professional Liability Insurance, you can be reimbursed in a lump-sum payment by submitting proof of payment anytime during the calendar year to your Operating Unit POC.

If you want the premiums deducted from your bi-weekly salary payment, you must first obtain permission from your Operating Unit and then establish the deduction yourself via NFC’s Employee Personnel Page.

If you discontinue or cancel your policy before the end of the covered year, you may be reimbursed on a pro-rated basis. Make sure the Professional Liability Insurance Reimbursement Claim Form and all required supporting documentation are submitted to the SHRO as soon as possible to receive your pro-rated reimbursement for premiums.

Further Details and Resources

Do You Need Liability Insurance?

By G. Jerry Shaw Government Executive February 1, 2000