52.237-7 Indemnification and Medical

Liability Insurance.

As prescribed in 37.403 , insert the following clause:

Indemnification and Medical Liability Insurance (Jan 1997)

(a) It is expressly agreed and understood that this is a nonpersonal services contract, as defined in

Federal Acquisition Regulation (FAR) 37.101, under which the professional services rendered by the

Contractor are rendered in its capacity as an independent contractor. The Government may evaluate

the quality of professional and administrative services provided, but retains no control over

professional aspects of the services rendered, including by example, the Contractor’s professional

medical judgment, diagnosis, or specific medical treatments. The Contractor shall be solely liable for

and expressly agrees to indemnify the Government with respect to any liability producing acts or

omissions by it or by its employees or agents. The Contractor shall maintain during the term of this

contract liability insurance issued by a responsible insurance carrier of not less than the following

amount(s) per specialty per occurrence: *_______________.

(b) An apparently successful offeror, upon request by the Contracting Officer, shall furnish prior to

contract award evidence of its insurability concerning the medical liability insurance required by

paragraph (a) of this clause.

(c) Liability insurance may be on either an occurrences basis or on a claims-made basis. If the policy

is on a claims-made basis, an extended reporting endorsement (tail) for a period of not less than 3

years after the end of the contract term must also be provided.

(d) Evidence of insurance documenting the required coverage for each health care provider who will

perform under this contract shall be provided to the Contracting Officer prior to the commencement

of services under this contract. If the insurance is on a claims-made basis and evidence of an

extended reporting endorsement is not provided prior to the commencement of services, evidence of

such endorsement shall be provided to the Contracting Officer prior to the expiration of this

contract. Final payment under this contract shall be withheld until evidence of the extended

reporting endorsement is provided to the Contracting Officer.

(e) The policies evidencing required insurance shall also contain an endorsement to the effect that

any cancellation or material change adversely affecting the Government’s interest shall not be

effective until 30 days after the insurer or the Contractor gives written notice to the Contracting

Officer. If, during the performance period of the contract the Contractor changes insurance

providers, the Contractor must provide evidence that the Government will be indemnified to the

limits specified in paragraph (a) of this clause, for the entire period of the contract, either under the

new policy, or a combination of old and new policies.

(f) The Contractor shall insert the substance of this clause, including this paragraph (f), in all

subcontracts under this contract for health care services and shall require such subcontractors to

provide evidence of and maintain insurance in accordance with paragraph (a) of this clause. At least

5 days before the commencement of work by any subcontractor, the Contractor shall furnish to the

Contracting Officer evidence of such insurance.

* Contracting Officer insert the dollar value(s) of standard coverage(s) prevailing within the local
community as to the specific medical specialty, or specialties, concerned, or such higher amount as

the Contracting Officer deems necessary to protect the Government's interests.

(End of clause)

Parent topic: 52.237 [Reserved]