Federal Acquisition Regulation
Insurance under fixed-price contracts
FAR 28.306
(a) General . Although the Government is not ordinarily concerned with the contractor’s insurance coverage if the contract is a fixed-price contract, in special circumstances agencies may specify insurance requirements under fixed-price contracts. Examples of such circumstances include the following: (1) The contractor is, or has a separate operation, engaged principally in Government work. (2) Government property is involved. (3) The work is to be performed on a Government installation. (4) The Government elects to assume risks for which the contractor ordinarily obtains commercial insurance. (b) Work on a Government installation. (1) When the clause at 52.228-5 , Insurance-Work on a Government Installation, is required to be included in a fixed-price contract by Contract clause for work on a Government installation (FAR 28.310) , the coverage specified in Insurance under cost-reimbursement contracts (FAR 28.307) is the minimum insurance required and shall be included in the contract Schedule or elsewhere in the contract. The contracting officer may require additional coverage and higher limits. (2) When the clause at 52.228-5 , Insurance-Work on a Government Installation, is not required by Contract clause for work on a Government installation (FAR 28.310) but is included because the contracting officer considers it to be in the Government’s interest to do so, any of the types of insurance specified in Insurance under cost-reimbursement contracts (FAR 28.307) may be omitted or the limits may be lowered, if appropriate.
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