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FAR and DFARS › FAR Part 52: Solicitation Provisions and Contract Clauses › Subpart 52.2

FAR 52.228-8 Liability and Insurance—Leased Motor Vehicles.

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 clause makes the Government responsible for certain loss or damage to leased motor vehicles and third-party property or injuries, except where caused by the Contractor's negligence. The Contractor must carry insurance for its own liabilities and notify the Contracting Officer that coverage is in place before starting work. It matters because it sets who pays for what when leased vehicles are used on a Government contract.

Applies to: Contractors leasing motor vehicles for Government work

What it requires

  • Be liable for and indemnify the Government against claims resulting from the Contractor's fault, negligence, or wrongful acts or omissions
  • Provide and maintain insurance covering those liabilities at the stated minimum amounts
  • Notify the Contracting Officer in writing before commencing work that the required insurance has been obtained
  • Ensure policies include an endorsement limiting cancellation or material change and excluding insurer subrogation against the Government

Key terms: leased vehicles · Federal Tort Claims Act · indemnify and hold harmless · subrogation · Contracting Officer

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

The text

As prescribed in 28.312, insert the following clause:

Liability and Insurance—Leased Motor Vehicles (MAY 1999)

(a) The Government shall be responsible for loss of or damage to—

(1) Leased vehicles, except for (i) normal wear and tear and (ii) loss or damage caused by the negligence of the Contractor, its agents, or employees; and

(2) Property of third persons, or the injury or death of third persons, if the Government is liable for such loss, damage, injury, or death under the Federal Tort Claims Act (28 U.S.C. 2671-2680).

(b) The Contractor shall be liable for, and shall indemnify and hold harmless the Government against, all actions or claims for loss of or damage to property or the injury or death of persons, resulting from the fault, negligence, or wrongful act or omission of the Contractor, its agents, or employees.

(c) The Contractor shall provide and maintain insurance covering its liabilities under paragraph (b) of this clause, in amounts of at least $200,000 per person and $500,000 per occurrence for death or bodily injury and $20,000 per occurrence for property damage or loss.

(d) Before commencing work under this contract, the Contractor shall notify the Contracting Officer in writing that the required insurance has been obtained. The policies evidencing required insurance shall contain an endorsement to the effect that any cancellation or any material change adversely affecting the interests of the Government shall not be effective (1) for such period as the laws of the State in which this contract is to be performed prescribe or (2) until 30 days after written notice to the Contracting Officer, whichever period is longer. The policies shall exclude any claim by the insurer for subrogation against the Government by reason of any payment under the policies.

(e) The contract price shall not include any costs for insurance or contingency to cover losses, damage, injury, or death for which the Government is responsible under paragraph (a) of this clause.

(End of clause)

Sections it refers to

  • 28.312 Contract clause for insurance of leased motor vehicles.

Sections that refer to it

  • 28.312 Contract clause for insurance of leased motor vehicles.

← 52.228-7 Insurance—Liability to Third Persons. · 52.228-9 Cargo Insurance. →

Rule changes for FAR Part 52

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

FAR 52.228-8 Liability and Insurance—Leased Motor Vehicles · SpendQuery