Insurance-Work on a Government Installation
Contractors must secure, maintain, and document required insurance coverage for themselves and applicable subcontractors before starting work on a Government installation, ensuring the Government is protected against policy changes or cancellations.
Overview
FAR 52.228-5 requires contractors performing work on a Government installation to provide and maintain specified types and minimum amounts of insurance at their own expense throughout the contract period. Contractors must notify the Contracting Officer in writing before starting work that the required insurance has been obtained. Insurance policies must include an endorsement ensuring that cancellation or material changes affecting the Government’s interest are not effective until the longer of the state-prescribed period or 30 days after written notice to the Contracting Officer. The clause also mandates that contractors flow down these insurance requirements to applicable subcontractors and maintain proof of their insurance, making such records available to the Contracting Officer upon request.
Key Rules
- Insurance Requirement
- Contractors must provide and maintain the types and minimum amounts of insurance specified in the contract.
- Notification and Endorsement
- Contractors must notify the Contracting Officer in writing of insurance coverage before work begins, and policies must include a cancellation/change endorsement.
- Subcontractor Flowdown
- Contractors must include this clause in subcontracts involving work on a Government installation and ensure subcontractors maintain required insurance.
- Recordkeeping
- Contractors must keep copies of subcontractors’ insurance proofs and provide them to the Contracting Officer upon request.
Responsibilities
- Contracting Officers: Verify contractor compliance with insurance requirements and endorsements; request proof of subcontractor insurance as needed.
- Contractors: Obtain and maintain required insurance, notify the Contracting Officer, ensure proper policy endorsements, flow down requirements to subcontractors, and maintain insurance records.
- Agencies: Oversee contractor and subcontractor compliance with insurance provisions.
Practical Implications
This clause protects the Government’s interests by ensuring contractors and their subcontractors are adequately insured when working on Government installations. Failure to comply can delay contract performance or result in noncompliance findings. Contractors should pay close attention to insurance requirements, notification procedures, and documentation to avoid administrative issues or contract disputes.