FAR and DFARS › FAR Part 28: Bonds and Insurance › Subpart 28.3
FAR 28.301 Policy.
The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.
In plain English
This section states when contractors must carry insurance. Contractors subject to Cost Accounting Standard 416 must obtain insurance for the perils they face, unless the contract provides indemnification or relieves them of liability for Government property. It also notes that some insurance, such as workers' compensation, is required by law regardless of CAS 416, and that health care services contractors must maintain medical liability insurance.
Applies to: Contractors, including those subject to CAS 416 and those awarded nonpersonal health care services contracts
What it requires
- Contractors subject to CAS 416 must obtain insurance, by purchase or self-coverage, for the perils to which they are exposed, except in specified circumstances.
- Contractors must provide insurance for certain types of perils as required by law and this regulation, such as workers' compensation.
- Contractors awarded nonpersonal services contracts for health care services must maintain medical liability insurance and indemnify the Government for liability producing acts or omissions by the contractor, its employees and agents.
Key terms: Cost Accounting Standard (CAS) 416 · self-coverage · indemnify · workers' compensation · medical liability insurance
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
Contractors shall carry insurance under the following circumstances:
(a)(1) The Government requires any contractor subject to Cost Accounting Standard (CAS) 416 (48 CFR 9004.416) to obtain insurance, by purchase or self-coverage, for the perils to which the contractor is exposed, except when (i) the Government, by providing in the contract in accordance with law, agrees to indemnify the contractor under specified circumstances or (ii) the contract specifically relieves the contractor of liability for loss of or damage to Government property.
(2) The Government reserves the right to disapprove the purchase of any insurance coverage not in the Government's interest.
(3) Allowability of the insurance program's cost shall be determined in accordance with the criteria in 31.205-19.
(b) Contractors, whether or not their contracts are subject to CAS 416, are required by law and this regulation to provide insurance for certain types of perils (e.g., workers' compensation). Insurance is mandatory also when commingling of property, type of operation, circumstances of ownership, or condition of the contract make it necessary for the protection of the Government. The minimum amounts of insurance required by this regulation (see 28.307-2) may be reduced when a contract is to be performed outside the United states and its outlying areas. When more than one agency is involved, the agency responsible for review and approval of a contractor's insurance program shall coordinate with other interested agencies before acting on significant insurance matters.
(c) Contractors awarded nonpersonal services contracts for health care services are required to maintain medical liability insurance and indemnify the Government for liability producing acts or omissions by the contractor, its employees and agents (see 37.400).
← 28.204-4 Contract clause. · 28.302 Notice of cancellation or change. →
Rule changes for FAR Part 28
- Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 14, 28, 36, and 52 ↗ · proposed 2026-09-18 · comments due 2026-10-19
- Federal Acquisition Regulation; Technical Amendments ↗ · final rule 2024-04-22 · effective 2024-05-22
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.