What Professional Liability Insurance Premiums Qualify for Reimbursement

The term "professional liability insurance" means insurance which provides coverage for:

(1) legal liability for damages due to injuries to other persons, damage to their property,

or other damage or loss to such other persons (including the 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

(2) 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.

WHAT PROFESSIONAL LIABILITY INSURANCE PREMIUMS QUALIFY FOR

REIMBURSEMENT. In order to receive partial premium reimbursement, the PLIR policy

must provide the following coverage for a qualified employee who is alleged to have violated

an employee's or private citizen's rights when carrying out his or her official duties:

A private lawyer to represent him or her during a criminal or administrative investigation;

Representation when facing disciplinary action, such as suspension or removal, until a

final decision is rendered by the Merit Systems Protection Board (MSPB); and

Attorney representation and payment of any personal judgement against him or her when

standing accused of a constitutional tort.

WHAT PREMIUMS DO NOT QUALIFY FOR REIMBURSEMENT. The PLIR will not

reimburse premiums for:

Representation during arbitration under a collective bargaining agreement;

Allegations related to matters occurring outside of the scope of an employee's official

duties, for example, a domestic dispute; and