[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: 48CFR47]



[Page 880]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 47_TRANSPORTATION--Table of Contents

 

                          Subpart 47.1_General

 

47.102  Transportation insurance.



    (a) The Government generally (1) retains the risk of loss of and/or 

damage to its property that is not the legal liability of commercial 

carriers and (2) does not buy insurance coverage for its property in the 

possession of commercial carriers (40 U.S.C. 17307). (See part 28, Bonds 

and Insurance.)

    (b) Under special circumstances the Government may, if such action 

is considered necessary and in the Government's interest, (1) buy 

insurance coverage for Government property or (2) require the carrier to 

(i) assume full responsibility for loss of or damage to the Government 

property in its possession and (ii) buy insurance to cover the carrier's 

assumed responsibility. The cost of this insurance to the carrier shall 

be part of the transportation cost. (The Secretary of the Treasury 

prescribes regulations regarding shipments of valuables in 31 CFR parts 

261 and 262.)

    (c)(1) If special circumstances dictate the need for the Government 

to buy insurance coverage, the contracting officer shall ascertain that 

(i) there is no statutory prohibition and (ii) funds for insurance are 

available.

    (2) The contracting officer shall document the need and 

authorization for insurance coverage in the contract file.



[48 FR 42424, Sept. 19, 1983, as amended at 70 FR 57455, Sept. 30, 2005]