United States Department of Agriculture 

 Marketing and Regulatory Programs 

 Agricultural Marketing Service 

 Animal and Plant Health Inspection Service 

 Grain Inspection, Packers and Stockyards Administration

 Directive MRP 4060.2 11/5/09 

PROFESSIONAL LIABILITY INSURANCE REIMBURSEMENT

1. PURPOSE 

 

This Directive establishes the Marketing and Regulatory Programs policy for partially 

reimbursing employees for professional liability insurance. 

2. AUTHORITIES 

a. Section 636 of the Treasury, Postal Service and General Appropriations Act, 

1996, contained in Public Law (P.L.) 104-208 and P.L. 106-58, Title IV, Section 

642(a). 

b. USDA Departmental Regulation, 4060-001, Professional Liability Insurance 

Partial Premium Reimbursement Program, dated February 7, 2002. 

3. BACKGROUND 

Professional liability insurance provides coverage for damages and legal expenses 

incurred by employees who are sued personally for actions taken which relate to their 

official duties. The need for this insurance does not exist in cases where the Justice 

Department determines that the employee acted within the scope of the employee's duties 

and it is in the best interest of the Government to provide legal representation. 

Employees must make a personal decision concerning their need for coverage and 

whether to purchase professional liability insurance. 

4. POLICY 

Marketing and Regulatory Programs will reimburse eligible employees for 50 percent of 

the annual cost associated with professional liability insurance. To be eligible for 

reimbursement, the employee must occupy a position that meets the definition of 

“supervisor” or “management official” in 5 U.S.C. 7103(a)(10) and (11), or the employee 

must serve in a comparable role in an Incident Command situation during the calendar 

year. Incident Command System (ICS) roles that are covered include those designated 

as Commander, Officer, Chief, Director, and Supervisor. 

Distribution: AMS, APHIS, GIPSA Originating Office: MRPBS-HRD
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5. DEFINITIONS 

 For the purpose of this Directive the following definitions apply: 

a. Incident. An occurrence caused by either human or natural phenomena that 

requires response actions to prevent or minimize loss of life, damage to property, 

and/or the environment. Examples of incidents include: hazardous material spill, 

food or drug contamination, and natural disasters. 

b. ICS. A standardized, on scene, all hazard incident management concept. ICS is 

based upon a flexible, scalable response organization providing a common 

framework so that people can work together effectively. 

c. Incident Response Team. A group of people who prepare for and respond to 

any emergency incident, such as a natural disaster or interruption of business 

operations. Incident response team members are trained and prepared to fulfill 

the roles required by the specific situation. As the size of the incident changes, 

the command situation may shift through several phases. 

d. Management Official. An individual employed by an agency in a position that 

requires or authorizes the individual to formulate, determine, or influence the 

policies of the agency (5 U.S.C. 7103(a) (11)). 

e. Professional Liability Insurance. Insurance that 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 persons (including the 

expenses of litigation and settlement) resulting from or arising out of any 

tortuous act, error, or omission of the covered individual while performing 

official duties as an eligible 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 performing official duties, and other legal costs 

and fees relating to any such administrative or judicial proceeding. 

f. Supervisor. An individual employed by an agency having authority to hire, 

direct, assign, promote, reward, transfer, furlough, layoff, recall, suspend, 

discipline, or remove employees; to adjust their grievances; or to effectively 

recommend such action. (5 U.S.C. 7103 (a) (10)). 
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6. IDENTIFYING AND VERIFYING ELIGIBLE EMPLOYEES 

 The employee’s supervisor (or other designated approving official) must verify the 

employee’s eligibility before approving the reimbursement request. The employee is 

eligible if a., b., or c. applies: 

a. Review of Employee’s Position Description. The back of the AD-332, Position 

Description Cover Sheet, Block B7, contains one of the following supervisory 

codes: 

(1) Code 2 (Supervisor). 

(2) Code 4 (Supervisory, but less than 25 percent of the time). 

(3) Code 5 (Management Official). 

b. Knowledge of the Work Performed. The approving official determines that the 

position meets the definition of “supervisor” or “management official” as stated in 

this Directive based on the position’s duties and his/her knowledge of the work 

performed. 

c. Service in an Incident Command Role. The employee served in a supervisory 

or management official role in an ICS situation during the calendar year. The ICS 

roles of Commander, Officer, Chief, Director, and Supervisor meet this 

requirement. 

 

Employees who separate from the agency or the Federal government are not eligible for 

reimbursement after they leave employment. 

7. REIMBURSEMENT 

a. Reimbursement Limitation. Reimbursement will be limited to 50 percent of the 

annual cost of professional liability insurance. This is the maximum permitted by 

Section 636 of P.L. 104-208. 

b. What to Submit. Eligible employees must submit a request for reimbursement 

by completing SF-1164, Claim for Reimbursement for Expenditures on Official 

Business, and include the required supporting documentation as described below. 

(1) Indicate the purpose of the reimbursement is for professional liability 

insurance. 

(2) If eligibility is based on an ICS role, include a notation of the employee’s 

ICS role and dates of service in that role. 
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(3) Attach an invoice, billing statement, or receipt from the insurance 

company showing that it is for professional liability insurance, the period 

covered by the policy, and the cost. 

(4) Attach proof of payment if it is not evident from the documentation in 

item 3, above. Examples of acceptable proof of payment include, but are 

not limited to, an online payment confirmation, a copy of the front and 

back of a cancelled check (with the account number blocked out for 

privacy reasons), or a signed statement from the employee certifying the 

date the insurance was purchased and the amount paid. 

(5) The employee signs the SF-1164 in block 10. 

(6) After verifying the employee’s eligibility for reimbursement, the 

supervisor or other designated approving official signs the SF-1164 in 

block 8. 

c. When to Submit. Eligible employees must submit requests for reimbursements 

as soon as possible after completing payments, but no later than the end of the 

calendar year following the year in which the cost for the partial liability 

insurance was incurred. 

d. Where to Submit. Eligible employees should submit approved SF-1164s and 

supporting documentation as follows: 

Agency: Where to Submit: 

AMS Program’s Administrative Office or 

Resource Management Office 

APHIS and GIPSA APHIS, Financial Management Division 

Financial Operations Branch 

ATTN: Accounting and Payments Team 

100 North Sixth Street 

Minneapolis, MN 55403 

8. APPEALS 

Non-bargaining unit employees must follow the APHIS Administrative Grievance 

System process to appeal a denial of reimbursement payment. Bargaining unit members 

must use negotiated grievance procedures. 

9. INQUIRIES 

a. Inquiries may be directed to the Human Resources Division, Human Resources 

Policy Branch, at 301-734-6466. 
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b. This Directive can be accessed on the Internet at 

http://www.aphis.usda.gov/library, and on the AMS Internet at 

http://www.ams.usda.gov/amsissuances. 

/s/ 

Gregory L. Parham 

Deputy Administrator 

MRP Business Services