FAR 52.228-7 - Insurance - Liability to Third Persons
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: | Facilities; Cost Reimbursement, Supply; Communication Services; Cost Reimbursement, Service; Cost Reimbursement, R&D; Indefinite Delivery |
Optional: | Utility Services; Simplified Acquisition Procedures (Excludes Micro-Purchase); Dismantling, Demolition or Removal of Improvements; Leasing of Motor Vehicles; Fixed Price, Construction; Time & Material/Labor Hour; Cost Reimbursement, Construction; Fixed Price, Service |
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.