MILITARYREPORT Special Bulletin

WHY YOU SHOULD GET PROFESSIONAL LIABILITY INSURANCE

Professional Liability Insurance (PLI) recently became available for active duty members of the U.S. military. This article explains why military members should purchase this coverage.

INTRODUCTION
Military members at all grades and levels can be sued by citizens for alleged violations of their constitutional and statutory rights. In fact, most military managers frequently make decisions that could subject them to suit by a citizen. If a suit occurs, the Department of Justice may be willing to handle the suit, and rarely do military members find themselves ordered to pay damages as a result of those suits.

As a general rule, military managers are immune from suit by subordinate military and civilian employees if they are performing their official duties. As with federal civilian employees, DOJ makes a determination "whether the manager/employee was acting within the scope of his/her employment" and whether providing representation to the individual is "in the best interests of the United States." Acting within the scope of your employment does not mean someone cannot file suit, it just means that DOJ will take over and have the U.S. Government substituted as the defendant. However, the decision to represent the individual is separate and distinct from the decision that the person was acting within the scope of employment. DOJ has been known to find that someone was acting within the scope of employment and yet refuse to represent the person. In that situation, the person will need legal representation and will be responsible for his or her own legal fees.

In addition, managers are particularly vulnerable when dealing with EEO issues, such as sexual harassment, or a situation involving a pattern or practice of illegal discrimination that might prove "intent," and similar situations involving claims of discrimination. As noted above, these issues can result in individual suits against the military manager from citizens or subordinate civilian employees. In a recent case, involving a junior NCO accused of sexual harassment, DOJ refused to represent him, and he was on his own in U.S. District Court. Because of DOJ's refusal he became responsible for all of his legal expenses.

ADMINISTRATIVE DEFENSE RIDER
The examples discussed above underline why in the civilian world the Senior Executives Association, Federal Managers Association, Professional Managers Association and other professional and management associations recommend PLI insurance. That reason is the Administrative Defense Rider that pays for a civilian, and now military, manager's legal fees up to $100,000. The coverage includes situations where the manager becomes the subject of an IG investigation, or an investigation for alleged whistleblower reprisal by OSC, or is named as the responsible management official in an EEO complaint, or has a disciplinary or adverse action proposed against him/her for some alleged wrongdoing, and similar situations.

It is the rare and fortunate manager who at some point in his/her career is not accused of some wrongdoing. It may be by a subordinate employee unhappy that a manager is insisting he do his work, who decides to pick up the phone and make an anonymous allegation to an IG hotline. It could be an employee who did not get a promotion, or got a lower than expected rating, or did not get a desired detail or job assignment, or got an unwanted detail or assignment. In these instances managers could be (and often are) accused of race, or age, or gender, or handicap, or religious or ethnic discrimination and forced to defend their actions.

In some instances the military will provide a lawyer to help a military manager. Where representation is not provided private counsel must be obtained, and even in cases where the miilitary provides counsel, military managers frequently feel the need to retain a private attorney as well. Regrettably, it can cost $30-50,000 in legal fees and costs to resolve a case if you are the subject of an adverse or disciplinary action and wish to appeal it. It can easily cost $10,000 if you are the subject of an IG, EEO or administrative investigation, and must go through a long process including numerous interviews, gathering supporting statements, and the like.

MILITARY PLI PAYS LEGAL COSTS
In the situations discussed above, Military PLI would have paid those legal costs. Military PLI is only available through Wright & Co. You can go to their web site at http://www.wrightandco.com/cseba/csebapage34.htm or you can call them for more information at 1-800-424-9801. If you are calling from the District of Columbia use (202) 289-0200. For $1,000,000 of liability coverage and the $100,000 legal defense provision the annual cost is $292. For $500,000 of liability coverage and the $100,000 legal defense provision the annual cost is $229. You decide which coverage would give you peace of mind.

Compliments of:
Wright & Co.
Providing Professional Liability Insurance
to the Military Community
www.wrightandco.com/cseba/csebapage34.htm

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