FAR and DFARS › FAR Part 28: Bonds and Insurance › Subpart 28.3
FAR 28.306 Insurance under fixed-price contracts.
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 explains that under fixed-price contracts the Government usually does not care about the contractor's insurance, but in special situations agencies may require it. Those situations include when the contractor mainly does Government work, Government property is involved, work happens on a Government installation, or the Government takes on risks the contractor would normally insure. When the Insurance—Work on a Government Installation clause applies, the coverage in 28.307 is the minimum required and must be in the contract.
Applies to: Fixed-price contracts where agencies specify insurance requirements
What it requires
- Include the minimum insurance coverage specified in 28.307 in the contract Schedule or elsewhere in the contract when the clause at 52.228-5 is required by 28.310
Key terms: fixed-price contract · Government installation · Government property · 52.228-5 · 28.307
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(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) Work on a Government installation. (1) When the clause at 52.228-5, Insurance—Work on a Government Installation, is required to be included in a fixed-price contract by 28.310, the coverage specified in 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 52.228-5, Insurance—Work on a Government Installation, is not required by 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 28.307 may be omitted or the limits may be lowered, if appropriate.
← 28.305 Overseas workers' compensation and war-hazard insurance. · 28.307 Insurance under cost-reimbursement contracts. →
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.