Do you need insurance for federal contracts?

Insurance requirements for federal contracts are specified in FAR clause 52.228-5 and individual solicitations. Requirements vary by contract type and risk: **Commonly required coverage:** - **General liability**: Typically $500K-$1M per occurrence - **Auto liability**: $200K per person, $500K per occurrence, $20K property - **Workers' compensation**: Statutory limits as required by state law **Additional coverage sometimes required:** - Professional liability/E&O for services - Cyber liability for IT contracts - Aircraft/marine for specialty operations - Umbrella coverage for high-risk work - Builder's risk for construction **Contract-specific requirements:** - Solicitation Section H or I typically specifies - Requirements may exceed FAR minimums - High-risk work has higher requirements - Some agencies have agency-specific requirements **Compliance considerations:** - Must provide certificates of insurance - Government may be named as additional insured - Coverage must be maintained throughout performance - Policy cancellation notification required - Self-insurance may require government approval **Cost considerations:** - Include insurance costs in pricing - Premiums vary by industry and risk - May qualify for group rates through associations - SBA can help small businesses find coverage **If requirements seem excessive:** - Can sometimes negotiate during discussions - Demonstrate equivalent protection alternatives - Request waiver with justification - Consider teaming with company that has coverage