52.247-21 Contractor Liability for Personal Injury and/or Property Damage
Source: FAR 52.247-21 on acquisition.gov
Contractors providing transportation or related services must carry adequate insurance and are fully liable for any injuries or property damage caused by their operations, protecting the government from related claims.
Overview
FAR 52.247-21 establishes the contractor's liability for personal injury and property damage arising from the use, maintenance, or operation of vehicles or equipment during the performance of transportation or transportation-related services. The clause requires contractors to assume full responsibility for any such damages or injuries caused by their employees, agents, or equipment. Contractors must maintain adequate public liability, property damage, and workers’ compensation insurance at their own expense throughout the contract period. The government is explicitly absolved of any liability for damages or injuries resulting from the contractor’s operations, and contractors must indemnify the government against related claims.
Key Rules
- Contractor Assumes Liability
- Contractors are responsible for all damages or injuries caused by their vehicles, equipment, employees, or agents during contract performance.
- Insurance Requirements
- Contractors must maintain sufficient public liability and property damage insurance, as well as workers’ compensation and any other legally required insurance, at their own expense.
- Government Indemnification
- The government is not liable for contractor-caused damages or injuries, and contractors must indemnify the government against such claims.
Responsibilities
- Contracting Officers: Ensure the clause is included in applicable solicitations and contracts; verify contractor compliance with insurance requirements.
- Contractors: Obtain and maintain required insurance; assume liability for damages/injuries; indemnify the government.
- Agencies: Oversee compliance and address any claims or disputes related to contractor liability.
Practical Implications
- This clause protects the government from liability for contractor-caused damages or injuries during transportation services.
- Contractors must proactively secure and maintain insurance coverage and understand their indemnification obligations.
- Failure to comply can result in contract breaches, financial liability, or legal disputes.
As prescribed in 47.207-7(c), insert the following clause in solicitations and contracts for transportation or for transportation-related services:
Contractor Liability for Personal Injury and/or Property Damage (Apr 1984)
(a) The Contractor assumes responsibility for all damage or injury to persons or property occasioned through the use, maintenance, and operation of the Contractor’s vehicles or other equipment by, or the action of, the Contractor or the Contractor’s employees and agents.
(b) The Contractor, at the Contractor’s expense, shall maintain adequate public liability and property damage insurance during the continuance of this contract, insuring the Contractor against all claims for injury or damage.
(c) The Contractor shall maintain Workers’ Compensation and other legally required insurance with respect to the Contractor’s own employees and agents.
(d) The Government shall in no event be liable or responsible for damage or injury to any person or property occasioned through the use, maintenance, or operation of any vehicle or other equipment by, or the action of, the Contractor or the Contractor’s employees and agents in performing under this contract, and the Government shall be indemnified and saved harmless against claims for damage or injury in such cases.
(End of clause)