FAR 52.228-7 — Insurance — Liability to Third Persons
Establishes the government's right to require contractors performing cost-reimbursement work to carry liability insurance covering third-party claims.
When This Clause Applies
Required in cost-reimbursement contracts where the government determines third-party liability coverage is appropriate.
What This Means for Contractors
Contractor's insurance costs are allowable on cost-reimbursement contracts. The contractor must maintain coverage at levels specified by the CO. Claims paid by insurance reduce contractor liability; uninsured claims are contractor responsibility.
Common Pitfalls
- 1Inadequate coverage that exposes contractor to uninsured claims
- 2Premium costs that exceed reasonableness standards
- 3Failing to update coverage as work scope changes
Related Topics
Related Clauses
Workers' Compensation Insurance (Defense Base Act)
Requires contractors performing federal contracts outside the U.S. to carry workers' compensation insurance under the Defense Base Act for employees working overseas.
Insurance — Work on a Government Installation
Requires contractors performing work on federal installations to carry workers compensation, employer liability, comprehensive general liability, and automobile liability insurance at specified minimum coverage levels.
Continue Your Research
NAICS 518210 — Data Processing, Hosting, and Related Services
Find federal contracts under NAICS 518210. Common agencies, set-asides, contract values.
NAICS 541330 — Engineering Services
Find federal contracts under NAICS 541330. Common agencies, set-asides, contract values.
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