Difference between revisions of "FAR 52.228-7 - Insurance - Liability to Third Persons"
Line 2: | Line 2: | ||
|EffectiveDate=1996/03/01 | |EffectiveDate=1996/03/01 | ||
|ClauseorProvision=Clause | |ClauseorProvision=Clause | ||
− | |||
|Prescribedin=28.311-1 | |Prescribedin=28.311-1 | ||
− | |TypePurposeContract= | + | |TypePurposeContract=Time and Materials/Labor Hour -O; Leasing of Motor Vehicles -O; Communication Services -A; Dismantling, Demolition, or Removal of Improvements -O; Facilities -A; Indefinite Delivery -A; Utility Services -O |
− | | | + | |CCSubject=Insurance |
− | |FARClauseOverview='''(a)''' | + | |PrescriptionOverview===Prescription== |
− | + | ||
− | + | In accordance with agency acquisition regulations, the contracting officer shall insert the clause at 52.228-7, Insurance—Liability to Third Persons, in solicitations and contracts, other than those for construction contracts and those for architect-engineer services, when a cost-reimbursement contract is contemplated. | |
− | + | |FARClauseOverview===Clause== | |
+ | |||
+ | '''(a)''' | ||
+ | |||
+ | (1) Except as provided in paragraph (a)(2) of this clause, the Contractor shall provide and maintain workers’ compensation, employer’s liability, comprehensive general liability (bodily injury), comprehensive automobile liability (bodily injury and property damage) insurance, and such other insurance as the Contracting Officer may require under this contract. | ||
+ | |||
+ | (2) The Contractor may, with the approval of the Contracting Officer, maintain a self-insurance program, provided that, with respect to workers’ compensation, the Contractor is qualified pursuant to statutory authority. | ||
+ | |||
+ | (3) All insurance required by this paragraph shall be in a form and amount and for those periods as the Contracting Officer may require or approve and with insurers approved by the Contracting Officer. | ||
Line 16: | Line 23: | ||
'''(c)''' The Contractor shall be reimbursed— | '''(c)''' The Contractor shall be reimbursed— | ||
− | + | ||
− | + | (1) For that portion— | |
− | + | ||
− | + | :(i) Of the reasonable cost of insurance allocable to this contract; and | |
− | + | ||
− | + | :(ii) Required or approved under this clause; and | |
+ | |||
+ | (2) For certain liabilities (and expenses incidental to such liabilities) to third persons not compensated by insurance or otherwise without regard to and as an exception to the limitation of cost or the limitation of funds clause of this contract. These liabilities must arise out of the performance of this contract, whether or not caused by the negligence of the Contractor or of the Contractor’s agents, servants, or employees, and must be represented by final judgments or settlements approved in writing by the Government. These liabilities are for— | ||
+ | |||
+ | :(i) Loss of or damage to property (other than property owned, occupied, or used by the Contractor, rented to the Contractor, or in the care, custody, or control of the Contractor); or | ||
+ | |||
+ | :(ii) Death or bodily injury. | ||
Line 28: | Line 41: | ||
'''(e)''' The Contractor shall not be reimbursed for liabilities (and expenses incidental to such liabilities)— | '''(e)''' The Contractor shall not be reimbursed for liabilities (and expenses incidental to such liabilities)— | ||
− | + | ||
− | + | :(1) For which the Contractor is otherwise responsible under the express terms of any clause specified in the Schedule or elsewhere in the contract; | |
− | + | ||
− | + | :(2) For which the Contractor has failed to insure or to maintain insurance as required by the Contracting Officer; or | |
− | + | ||
− | + | :(3) That result from willful misconduct or lack of good faith on the part of any of the Contractor’s directors, officers, managers, superintendents, or other representatives who have supervision or direction of— | |
+ | |||
+ | :(i) All or substantially all of the Contractor’s business; | ||
+ | |||
+ | :(ii) All or substantially all of the Contractor’s operations at any one plant or separate location in which this contract is being performed; or | ||
+ | |||
+ | :(iii) A separate and complete major industrial operation in connection with the performance of this contract. | ||
Line 40: | Line 59: | ||
'''(g)''' If any suit or action is filed or any claim is made against the Contractor, the cost and expense of which may be reimbursable to the Contractor under this contract, and the risk of which is then uninsured or is insured for less than the amount claimed, the Contractor shall— | '''(g)''' If any suit or action is filed or any claim is made against the Contractor, the cost and expense of which may be reimbursable to the Contractor under this contract, and the risk of which is then uninsured or is insured for less than the amount claimed, the Contractor shall— | ||
− | |||
− | |||
− | |||
+ | (1) Immediately notify the Contracting Officer and promptly furnish copies of all pertinent papers received; | ||
+ | |||
+ | (2) Authorize Government representatives to collaborate with counsel for the insurance carrier in settling or defending the claim when the amount of the liability claimed exceeds the amount of coverage; and | ||
+ | |||
+ | (3) Authorize Government representatives to settle or defend the claim and to represent the Contractor in or to take charge of any litigation, if required by the Government, when the liability is not insured or covered by bond. The Contractor may, at its own expense, be associated with the Government representatives in any such claim or litigation. | ||
|ImportantNotesRequirements=[[Category:FAR 52 - Solicitation Provisions and Contract Clauses]] | |ImportantNotesRequirements=[[Category:FAR 52 - Solicitation Provisions and Contract Clauses]] | ||
|IncorporatedbyReference=Yes | |IncorporatedbyReference=Yes | ||
|UniformContractFormat=I | |UniformContractFormat=I | ||
|Editor=Marshall | |Editor=Marshall | ||
+ | |ProvisionClauseNumberAlternate=52.228-7 | ||
+ | |ProvisionClauseDescription=- | ||
|Checked=no | |Checked=no | ||
|HasTermDate=2014/03/31 | |HasTermDate=2014/03/31 |
Revision as of 07:13, 19 December 2014
Prescribed in 28.311-1 | |
Effective Date: | 1 March 1996 |
Clause or Provision: | Clause |
Provision or Clause Number: | 52.228-7 - Insurance - Liability to Third Persons |
Principle Type And/Or Purpose of Contract: | |
Required: | |
Applicable: | Communication Services; Facilities; Indefinite Delivery; |
Optional: | Time and Materials/Labor Hour; Leasing of Motor Vehicles; Dismantling, Demolition, or Removal of Improvements; Utility Services; |
Subject: | Insurance |
ProcurementType: | |
Contract Threshold: | |
Prescription Overview: |
PrescriptionIn accordance with agency acquisition regulations, the contracting officer shall insert the clause at 52.228-7, Insurance—Liability to Third Persons, in solicitations and contracts, other than those for construction contracts and those for architect-engineer services, when a cost-reimbursement contract is contemplated. |
Clause Overview: |
Clause(a) (1) Except as provided in paragraph (a)(2) of this clause, the Contractor shall provide and maintain workers’ compensation, employer’s liability, comprehensive general liability (bodily injury), comprehensive automobile liability (bodily injury and property damage) insurance, and such other insurance as the Contracting Officer may require under this contract. (2) The Contractor may, with the approval of the Contracting Officer, maintain a self-insurance program, provided that, with respect to workers’ compensation, the Contractor is qualified pursuant to statutory authority. (3) All insurance required by this paragraph shall be in a form and amount and for those periods as the Contracting Officer may require or approve and with insurers approved by the Contracting Officer.
(1) For that portion—
(2) For certain liabilities (and expenses incidental to such liabilities) to third persons not compensated by insurance or otherwise without regard to and as an exception to the limitation of cost or the limitation of funds clause of this contract. These liabilities must arise out of the performance of this contract, whether or not caused by the negligence of the Contractor or of the Contractor’s agents, servants, or employees, and must be represented by final judgments or settlements approved in writing by the Government. These liabilities are for—
(1) Immediately notify the Contracting Officer and promptly furnish copies of all pertinent papers received; (2) Authorize Government representatives to collaborate with counsel for the insurance carrier in settling or defending the claim when the amount of the liability claimed exceeds the amount of coverage; and (3) Authorize Government representatives to settle or defend the claim and to represent the Contractor in or to take charge of any litigation, if required by the Government, when the liability is not insured or covered by bond. The Contractor may, at its own expense, be associated with the Government representatives in any such claim or litigation. |
Important Notes/Requirements: | |
Subcontract Threshold: | |
Incorporated by Reference: | Yes |
Uniform Contract Format: | I |
Editor: | Marshall |
Personal notes.