[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR28.301]

[Page 545]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 28_BONDS AND INSURANCE--Table of Contents
 
                         Subpart 28.3_Insurance
 
Sec.  28.301  Policy.


    Contractors shall carry insurance under the following circumstances:
    (a)(1) The Government requires any contractor subject to Cost 
Accounting Standard (CAS) 416 (48 CFR 9004.416 (appendix B, FAR loose-
leaf edition)) to obtain insurance, by purchase or self-coverage, for 
the perils to which the contractor is exposed, except when (i) the 
Government, by providing in the contract in accordance with law, agrees 
to indemnify the contractor under specified circumstances or (ii) the 
contract specifically relieves the contractor of liability for loss of 
or damage to Government property.
    (2) The Government reserves the right to disapprove the purchase of 
any insurance coverage not in the Government's interest.
    (3) Allowability of the insurance program's cost shall be determined 
in accordance with the criteria in 31.205-19.
    (b) Contractors, whether or not their contracts are subject to CAS 
416, are required by law and this regulation to provide insurance for 
certain types of perils (e.g., workers' compensation). Insurance is 
mandatory also when commingling of property, type of operation, 
circumstances of ownership, or condition of the contract make it 
necessary for the protection of the Government. The minimum amounts of 
insurance required by this regulation (see 28.307-2) may be reduced when 
a contract is to be performed outside the United states and its outlying 
areas. When more than one agency is involved, the agency responsible for 
review and approval of a contractor's insurance program shall coordinate 
with other interested agencies before acting on significant insurance 
matters.
    (c) Contractors awarded nonpersonal services contracts for health 
care services are required to maintain medical liability insurance and 
indemnify the Government for liability producing acts or omissions by 
the contractor, its employees and agents (see 37.400).

[48 FR 42286, Sept. 19, 1983, as amended at 54 FR 5056, Jan. 31, 1989; 
59 FR 67043, Dec. 28, 1994; 68 FR 28083, May 22, 2003]