[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR28.301]



[Page 563]

 

            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]



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