{"id":905123,"date":"2025-12-16T16:27:14","date_gmt":"2025-12-16T23:27:14","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=905123"},"modified":"2025-12-16T16:27:16","modified_gmt":"2025-12-16T23:27:16","slug":"insurance-coverage-meets-federal-contracts-part-1","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/insurance-coverage-meets-federal-contracts-part-1\/","title":{"rendered":"When Federal Contracts Meet Insurance Coverage \u2013 Part 1"},"content":{"rendered":"\n

Aron Beezley, Elizabeth A. Brown, Ryan Hedstrom and Katherine Henry | It Pays to Be Covered<\/a><\/p>\n\n\n\n

The Federal Acquisition Regulation (FAR) is a comprehensive set of regulations governing federal procurement \u2014 prescribing how agencies acquire goods and services and how contractors compete for, win, and perform government contracts. This encyclopedia of federal procurement addresses everything from debriefing rights to small business subcontracting requirements to how agencies should evaluate proposals. It also speaks directly to insurance and risk allocation. This series of blog posts will examine several common FAR clauses addressing insurance and risk allocation and will explain their significance from both a government contracts and an insurance coverage<\/a> perspective.<\/p>\n\n\n\n

The FAR & Its Insurance Provisions<\/h4>\n\n\n\n

The FAR contains both explanatory guidance and model contract clauses. The guidance on insurance is found in\u00a0Part 28.3<\/a>, and the model contract clauses related to insurance are found in\u00a0Part 52.228<\/a>. Agencies must follow the guidance of Part 28.3 and, where directed to do so, insert appropriate contract clauses from Part 52.228 into solicitations (and the resulting contracts).<\/p>\n\n\n\n

Reading the text of the guidance and the contract clauses is essential. Some of the clauses impose mandatory requirements, using language such as \u201cshall\u201d and \u201cmust,\u201d whereas other clauses merely incorporate permissive language, stating that an agency \u201cmay\u201d institute certain insurance requirements. For example, FAR 28.307-2 states that the agency \u201cmust require\u201d certain liability insurance coverage, while FAR 28.306(a) states that \u201cin special circumstances agencies may specify\u201d certain insurance requirements.<\/p>\n\n\n\n

The FAR Council is undertaking a comprehensive redesign of the FAR (for more information, see\u00a0our post explaining this project<\/a>). As part of this process, the FAR Council has published model deviation text for various FAR parts, and agencies are issuing class deviations indicating their implementation of that model deviation text. Importantly, Part 28 is being retained with only minor changes made for plain language clarity.<\/p>\n\n\n\n

What\u2019s Next?<\/h4>\n\n\n\n

Over the next few weeks, this series will continue with posts examining three key areas of insurance that may be required by your government contract: automotive liability, liabilities for workers, and liabilities to third persons.<\/p>\n\n\n\n