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FAR and DFARS › FAR Part 47: Transportation › Subpart 47.1

FAR 47.102 Transportation insurance.

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 how the Government handles transportation insurance for its property in the hands of commercial carriers. Generally, the Government keeps the risk of loss or damage and does not buy insurance for its property in a carrier's possession. In special circumstances, the Government may buy insurance or require the carrier to assume responsibility and buy insurance, with the cost becoming part of the transportation cost.

Applies to: Government contracts involving transportation of Government property by commercial carriers

What it requires

  • If special circumstances require the Government to buy insurance, the contracting officer must confirm there is no statutory prohibition and that funds are available.
  • The contracting officer must document the need and authorization for insurance coverage in the contract file.

Key terms: risk of loss · commercial carriers · insurance coverage · special circumstances · contracting officer

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) The Government generally (1) retains the risk of loss of and/or damage to its property that is not the legal liability of commercial carriers and (2) does not buy insurance coverage for its property in the possession of commercial carriers (40 U.S.C. 17307). (See part 28, Bonds and Insurance.)

(b) Under special circumstances the Government may, if such action is considered necessary and in the Government's interest, (1) buy insurance coverage for Government property or (2) require the carrier to (i) assume full responsibility for loss of or damage to the Government property in its possession and (ii) buy insurance to cover the carrier's assumed responsibility. The cost of this insurance to the carrier shall be part of the transportation cost. (The Secretary of the Treasury prescribes regulations regarding shipments of valuables in 31 CFR parts 361 and 362.)

(c)(1) If special circumstances dictate the need for the Government to buy insurance coverage, the contracting officer shall ascertain that (i) there is no statutory prohibition and (ii) funds for insurance are available.

(2) The contracting officer shall document the need and authorization for insurance coverage in the contract file.

← 47.101 Policies. · 47.103 Transportation Payment and Audit Regulation. →

Rule changes for FAR Part 47

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 47.102 Transportation insurance · SpendQuery