28.312
Contract clause for insurance of leased motor vehicles
FAR 28.312 mandates the inclusion of a specific insurance and liability clause in all contracts for leasing motor vehicles to ensure proper risk management.
Overview
FAR 28.312 requires contracting officers to include the clause at 52.228-8, Liability and Insurance-Leased Motor Vehicles, in all solicitations and contracts involving the leasing of motor vehicles. This ensures that both the government and contractors address liability and insurance requirements for leased vehicles, as referenced in subpart 8.11. The clause outlines the responsibilities for obtaining and maintaining adequate insurance coverage during the lease period, protecting both parties from potential losses or claims arising from vehicle use.
Key Rules
- Mandatory Clause Inclusion
- Contracting officers must insert FAR clause 52.228-8 in all solicitations and contracts for leased motor vehicles.
- Reference to Subpart 8.11
- The requirement is linked to procedures and policies in subpart 8.11, which covers leasing of motor vehicles.
Responsibilities
- Contracting Officers: Ensure the correct clause is included in all relevant solicitations and contracts.
- Contractors: Comply with the insurance and liability requirements specified in clause 52.228-8.
- Agencies: Oversee compliance and ensure risk is properly managed for leased vehicles.
Practical Implications
- This section exists to mitigate risk and clarify liability for leased motor vehicles in government contracts.
- It impacts daily contracting by standardizing insurance requirements and ensuring all parties understand their obligations.
- Common pitfalls include failing to include the clause or misunderstanding the insurance coverage required, which can lead to disputes or uncovered losses.