FAR 28.306 — Insurance under fixed-price contracts
Regulatory text. Not legal advice.
(a)
(a) General. Although the Government is not ordinarily concerned with the contractor’s insurance coverage if the contract is a fixed-price contract, in special circumstances agencies may specify insurance requirements under fixed-price contracts. Examples of such circumstances include the following:
(1) The contractor is—or has a separate operation—engaged principally in Government work.
(2) Government property is involved.
(3) The work is to be performed on a Government installation.
(4) The Government elects to assume risks for which the contractor ordinarily obtains commercial insurance.
(b)
(b) Work on a Government installation. (1) When the clause at FAR 52.228-5, Insurance—Work on a Government Installation, is required to be included in a fixed-price contract by FAR 28.310, the coverage specified in FAR 28.307 is the minimum insurance required and shall be included in the contract Schedule or elsewhere in the contract. The contracting officer may require additional coverage and higher limits.
(2) When the clause at FAR 52.228-5, Insurance—Work on a Government Installation, is not required by FAR 28.310 but is included because the contracting officer considers it to be in the Government’s interest to do so, any of the types of insurance specified in FAR 28.307 may be omitted or the limits may be lowered, if appropriate.
Source: eCFR • Pulled 2026-04-16