FAR 52.228-7 Insurance—Liability to Third Persons. Basic (Mar 1996)

As prescribed in 28.311-1, 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.

Insurance—Liability to Third Persons (Mar 1996)

(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.

(b) The Contractor agrees to submit for the Contracting Officer’s approval, to the extent and in the manner required by the Contracting Officer, any other insurance that is maintained by the Contractor in connection with the performance of this contract and for which the Contractor seeks reimbursement.

(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.

(d) The Government’s liability under paragraph (c) of this clause is subject to the availability of appropriated funds at the time a contingency occurs. Nothing in this contract shall be construed as implying that the Congress will, at a later date, appropriate funds sufficient to meet deficiencies.

(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.

(f) The provisions of paragraph (e) of this clause shall not restrict the right of the Contractor to be reimbursed for the cost of insurance maintained by the Contractor in connection with the performance of this contract, other than insurance required in accordance with this clause; provided, that such cost is allowable under the Allowable Cost and Payment clause of this contract.

(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.

(End of clause)

NONE

Time and Materials ✖ FFP ✖ Construction ✖ Architect-Eng ✖ 

52.228-10 Vehicular and General Public Liability Insurance.

52.228-3 Workers’ Compensation Insurance (Defense Base Act).

52.228-4 Workers’ Compensation and War-Hazard Insurance Overseas.

52.228-5 Insurance—Work on a Government Installation.

52.228-8 Liability and Insurance—Leased Motor Vehicles.

52.228-9 Cargo Insurance.

52.237-7 Indemnification and Medical Liability Insurance.

52.247-21 Contractor Liability for Personal Injury and/or Property Damage.

52.247-22 Contractor Liability for Loss of and/or Damage to Freight other than Household Goods.

52.247-23 Contractor Liability for Loss of and/or Damage to Household Goods.

252.217-7012 Liability and Insurance.

252.228-7001 Ground and Flight Risk.

252.247-7007 Liability and Insurance.

1852.228-75 Minimum Insurance Coverage.

1852.228-80 Insurance — Immunity From Tort Liability.

1852.228-81 Insurance — Partial Immunity From Tort Liability.

1852.228-82 Insurance — Total Immunity From Tort Liability.

5252.228-9501 LIABILITY INSURANCE (NAVAIR)

5252.228-9200 Liability Insurance--Fixed Price Contracts

5252.228-9201 Liability Insurance--Cost Type Contracts

3052.217-95 Liability and insurance (USCG).

3052.228-70 Insurance.

3052.228-90 Notification of Miller Act payment bond protection (USCG).

3052.228-91 Loss of or damage to leased aircraft (USCG).

3052.228-92 Fair market value of aircraft (USCG).

3052.228-93 Risk and indemnities (USCG).

5352.228-9101 Insurance Certificate Requirement in Spain (USAFE)

5152.228-4901 INSURANCE – WORK ON A GOVERNMENT INSTALLATION REQUIREMENTS

5152.228-4902 INSURANCE – LIABILITY TO THIRD PERSONS REQUIREMENTS (Cost Reimbursement Contract)

552.228-5 Government as Additional Insured.

652.228-70 Defense Base Act – Covered Contractor Employees.

652.228-71 Worker’s Compensation Insurance (Defense Base Act) - Services.

752.228-3 Worker's compensation insurance (Defense Base Act).

752.228-7 Insurance—liability to third persons.

752.228-9 Cargo insurance.

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