U.S. flag
          An official website of the United States Government  Main navigation
  

        

              Data Initiatives
                              Regulations
                                                                        Row 1
                                              FAR FAR
                              Smart Matrix Smart Matrix
                              Chapter 99 (CAS) Chapter 99 (CAS)
                              Row 2
                                              DFARS DFARS
                              DFARSPGI DFARSPGI
                              AFARS AFARS
                              DAFFARS DAFFARS
                              DAFFARS MP DAFFARS MP
                              DARS DARS
                              DLAD DLAD
                              NMCARS NMCARS
                              Row 3
                                              SOFARS SOFARS
                              TRANSFARS TRANSFARS
                              AGAR AGAR
                              AIDAR AIDAR
                              CAR CAR
                              DEAR DEAR
                              DIAR DIAR
                              DOLAR DOLAR
                              Row 4
                                              DOSAR DOSAR
                              DTAR DTAR
                              EDAR EDAR
                              EPAAR EPAAR
                              FEHBAR FEHBAR
                              GSAM/R GSAM/R
                              HHSAR HHSAR
                              HSAR HSAR
                              Row 5
                                              HUDAR HUDAR
                              IAAR IAAR
                              JAR JAR
                              LIFAR LIFAR
                              NFS NFS
                              NRCAR NRCAR
                              TAR TAR
                              VAAR VAAR
                              Tools
                                                                        Archives
                              Smart Matrix
                              Regulations Search
                              Acquisition Regulation Comparator (ARC)
                              Policy Network
                                                                        CAOC
                              CAAC
                              FAR Council
                              ISDC
 Breadcrumb
        Home
                            Regulations
                            NMCARS
                            Subpart 5228.3 - INSURANCE
        
                  NMCARS
NMCARS
Change Number: NMCARS Change 18-22 Effective Date: 07/11/2022
PartPart 5201Part 5202Part 5203Part 5204Part 5205Part 5206Part 5207Part 5208Part 5209Part 5211Part 5212Part 5213Part 5214Part 5215Part 5216Part 5217Part 5219Part 5222Part 5223Part 5225Part 5227Part 5228Part 5229Part 5230Part 5231Part 5232Part 5233Part 5234Part 5235Part 5236Part 5237Part 5239Part 5241Part 5242Part 5243Part 5245Part 5246Part 5248Part 5249Part 5250Part 5252Annex 1Annex 2Annex 3Annex 4Annex 5Annex 6Annex 7Annex 8Annex 9Annex 10Annex 11Annex 12Annex 13Annex 14Annex 15Annex 16Annex 17Annex 18Annex 19Annex 20Annex 21Annex 22Annex 23Annex 24Annex 25
Subpart5228.35228.90
Section5228.3015228.3055228.307
Leave this field blank
        
                  

                                
                  
        « PreviousNext »
Subpart 5228.3 - INSURANCESubpart 5228.3 - INSURANCE     **Parent topic:**  Part 5228 - BONDS AND INSURANCE5228.301 Policy.    (a)(1) DON policy is to rely upon the commercial insurance industry to the maximum extent practicable to protect contractors against risks arising under contracts. However, it may be preferable or necessary to provide Government indemnification--       (A) Where there is a continuing program, such as for nuclear vessels, and insurance premium costs over a period of time could equal the amount of coverage;       (B) Where war risk is involved;       (C) Where the cost of insurance is so excessive it is unreasonable and constitutes a "turndown quotation";       (D) Where the Government risk is rated only on its isolated experience and not shared with the risks of others, whether or not the risk is unusually hazardous;       (E) Where an urgent requirement allows insufficient time to receive a competitive insurance quotation;       (F) Where the degree of risk is either very small or catastrophic; or       (G) Where indemnification of the deductible portion of insurance coverage will substantially reduce insurance costs.       (b) All matters concerning indemnification shall be referred to DASN(P) for decision or recommendation sufficiently in advance of contract award. 5228.301-90 Authority to act.    DASN(P) is authorized to act by direction of the Secretary of the Navy, or as the duly authorized representative of the HCA, the contracting officer, or any other Naval official designated in the contract to:       (a) Require or approve contract insurance; and       (b) Execute, sign or endorse all lost policy releases; proofs of loss; subrogation agreements; endorsements of policies for claims and/or return premiums; payment orders; and insurance drafts made payable to SECNAV and not affecting the obligation of appropriations.5228.301-91 Payment of claims to third parties.    The following procedure shall be used in making all payments under contracts in which the Government assumes the risk of liability to third parties and such liability is not compensated for by insurance or otherwise:       (a) If any suit or action is filed or any claim is made against the contractor pursuant to the clause at FAR 52.228-7, Insurance--Liability to Third Persons, for loss of or damage to property, death or bodily injury arising out of performance of a contract, the contracting officer, in consultation with legal counsel, shall submit the following information via the HCA to DASN(P) for a determination as to whether the Government has assumed liability for the claim and if so, the amount to be paid:       (1) statements of all pertinent facts;       (2) the contracting officer's recommendation as to the action to be taken with respect to the claim; and       (3) the proposed payment amount.       (b) Unless DASN(P) advises otherwise within 30 calendar days after receipt of the information from the contracting officer, the third party may be paid the proposed payment amount unless pursuant to appeal by the contractor under the Disputes clause, a different amount is allowed.       (c) If DASN(P) determines that the Government did not assume liability, the contracting officer will be notified and no payment shall be made, unless pursuant to appeal by the contractor under the Disputes clause, a different decision is made.5228.305 Overseas workers' compensation and war-hazard insurance.    (d) Submit requests for waiver through DASN(P) by          email at usn.pentagon.asstsecnavrdadc.mbx.pabt@us.navy.mil with the subject          “[Activity Name] PGI 288.305- Overseas Workers' Compensation and War-Hazard Insurance          Waiver.”5228.307 Insurance under cost-reimbursement contracts.     5228.307-1 Group insurance plans.    (a) *Prior approval requirement*. Group insurance plans under cost-reimbursement contracts for which contract administration is retained by the DON shall be submitted for approval to the DON contracting officer responsible for contract administration.5228.307-90 Liability of subcontractors to third parties.    (a) In general, DON will not assume liability of subcontractors to third parties.       (b) Under cost-reimbursement contracts, contracting officers may, when in the best interest of Government, provide for flow down of the clause at FAR 52.228-7, Insurance--Liability to Third Persons, to cost-reimbursement subcontracts.
« PreviousNext »
FavoriteX

      NMCARS Parts
            Regulations Nmcars Menu
  

        
      Index
                              5201
                              5202
                              5203
                              5204
                              5205
                              5206
                              5207
                              5208
                              5209
                              5211
                              5212
                              5213
                              5214
                              5215
                              5216
                              5217
                              5219
                              5222
                              5223
                              5225
                              5227
                              5228
                              5229
                              5230
                              5231
                              5232
                              5233
                              5234
                              5235
                              5236
                              5237
                              5239
                              5241
                              5242
                              5243
                              5245
                              5246
                              5248
                              5249
                              5250
                              5252
                          NMCARS Annex
              Regulations Nmcars Annex Menu
  

        
      1
                              2
                              3
                              4
                              5
                              6
                              7
                              8
                              9
                              10
                              11
                              12
                              13
                              14
                              15
                              16
                              17
                              18
                              19
                              20
                              21
                              22
                              23
                              24
                              25

      ×
        Data Initiatives
                                                              Regulations
                                                              Tools
                                              Archives
                                                              Smart Matrix
                                                              Regulations Search
                                                              Acquisition Regulation Comparator (ARC)
                                                              Policy Network
                                              CAO.gov
                                                        CAO Home
                                                              Council Member
                                                                    Large Agencies
                                                              Small Agencies
                                                              Council Defining Documents
                                                                    CAOC History
                                                              CAOC Charter
                                                              Civilian Agency Acquisition Council (CAAC)
                                                              Federal Acquisition Regulatory Council
                                                              Interagency Suspension and Debarment Committee (ISDC)
                                                              Search
 ˄ Top Sign up for FAR News

                            Share the FAR
                        Upper Footer Menu
  

        
      Useful Links
                              FAR Resources
                              Training
                              Acquisition Systems
            
                            **Contact Us/FAQs**
                        **Privacy and Security Notice**
                        **Accessibility Aids**
                        **Last Updated 03/29/2024**
 ACQUISITION.GOV
                An official website of the General Services Administration About GSA
                Accessibility support
                FOIA requests
                No FEAR Act data
                Office of the Inspector General
                Performance reports
                Privacy policy Looking for U.S. government information and services?
            Visit USA.gov
 «
    
    Tt