GovernmentExecutive.com

The issue of professional liability insurance for federal managers hit the mainstream media again Sunday, with a New York Times story about CIA officers who are turning to Wright & Company for policies to cover their legal costs in the event they get hauled into federal court or become ensnared in a congressional investigation.

As the story notes, FBI agents, Secret Service officers, and U.S. Immigration and Customs Enforcement employees also have purchased the insurance. They're not the only ones. In the late 1990s, professional liability insurance became popular at the IRS after reform legislation provided a new avenue for agency employees to file complaints against their supervisors.

Exactly who should get the insurance has long been open to question. The Justice Department typically represents federal employees in proceedings resulting from actions taken in the course of their job duties, but some managers see the benefit of having personal representation, too.

In a 1998 report, the Office of Personnel Management found that in the previous five years, only 14 federal employees had been found personally liable in lawsuits brought against them in relation to their government duties. And in only one reported case did an employee actually have to pay damages. The Justice Department reported that it had received about 7,000 requests for representation from federal employees in the same period, and had rejected 150 of those requests, or 2 percent.

The insurance costs about $300 a year, and the government pays half the premium for supervisors and certain other employees.