FAR 52.228-10—Vehicular and General Public Liability Insurance.
Plain-English Summary
FAR 52.228-10, Vehicular and General Public Liability Insurance, is a solicitation and contract clause used in transportation and transportation-related service contracts when the contracting officer determines that insurance required by law is not enough to protect the Government’s interests. The clause addresses four main subjects: when the clause may be inserted, the contractor’s duty to maintain vehicular liability insurance, the contractor’s duty to maintain general public liability insurance, and the contractor’s separate duty to carry workers’ compensation and other legally required insurance for its own employees and agents. It requires the contracting officer to set specific dollar limits for bodily injury and property damage coverage in the contract, making the insurance requirement tailored to the risk of the work. In practice, the clause shifts the cost and responsibility for maintaining adequate third-party liability coverage to the contractor for the life of the contract. It is especially important where vehicles, public exposure, or transportation activities create a meaningful risk of injury or property damage beyond what mandatory state or local insurance laws already require. The clause does not itself define all insurance terms or replace applicable law; instead, it supplements legal minimums with contract-specific coverage levels determined by the contracting officer.
Key Rules
Applies to transportation work
This clause is used in solicitations and contracts for transportation or transportation-related services. It is not a universal insurance clause; the contracting officer uses it only when the nature of the work creates liability exposure that warrants additional protection.
Used when legal minimums are insufficient
The clause is inserted when the contracting officer determines that vehicular liability or general public liability insurance required by law is not sufficient. In other words, the contract can require more coverage than the minimum required by statute or regulation.
Contract must state coverage limits
The clause requires the contracting officer to fill in specific dollar amounts for bodily injury and property damage coverage. Those limits become part of the contract and should reflect the risk associated with the work being performed.
Maintain insurance during contract performance
The contractor must keep vehicular liability and general public liability insurance in force for the entire duration of the contract. Coverage cannot lapse during performance, because the obligation continues for the life of the contract.
Covers bodily injury and property damage
The clause separately addresses bodily injury and property damage limits. This ensures the contract specifies both per-person and per-occurrence or per-accident protection, rather than relying on a single general limit.
Workers’ compensation still required
The contractor must also maintain workers’ compensation and other legally required insurance for its own employees and agents. This requirement is separate from third-party liability coverage and remains in effect regardless of the liability limits set under the clause.
Responsibilities
Contracting Officer
Determine whether the insurance required by law is insufficient for the transportation or transportation-related work. If the clause is used, insert it in the solicitation and contract and fill in the required bodily injury and property damage limits.
Contractor
At its own expense, maintain vehicular liability and general public liability insurance at the contract-specified limits for the entire period of performance. Also maintain workers’ compensation and any other insurance legally required for its employees and agents.
Agency
Support the contracting officer’s risk assessment by identifying the level of exposure associated with the transportation work and ensuring the contract includes appropriate insurance requirements when needed.
Insurance Provider
Issue policies that satisfy the contract’s stated limits and coverage requirements, and keep the contractor informed of any changes, exclusions, or lapses that could affect compliance.
Practical Implications
Contractors should verify that their existing auto and general liability policies meet the exact contract limits before award or performance begins; minimum legal coverage may not be enough.
The contracting officer should not leave the dollar blanks unresolved, because the clause is incomplete without specific limits and those limits drive compliance and pricing.
A lapse in coverage during performance can create a contract compliance problem even if the contractor had valid insurance at the start of the job.
Contractors should confirm that subcontractors, drivers, and agents are covered as needed, especially where transportation-related services involve multiple parties or leased vehicles.
This clause is often a risk-allocation tool: contractors should expect the cost of higher insurance limits to be reflected in their pricing, and contracting officers should ensure the limits are reasonable and tied to the actual risk of the work.
Official Regulatory Text
As prescribed in 28.313 (b) , insert a clause substantially the same as the following in solicitations and contracts for transportation or for transportation-related services when the contracting officer determines that vehicular liability or general public liability insurance required by law is not sufficient: Vehicular and General Public Liability Insurance (Apr 1984) (a) The Contractor, at the Contractor’s expense, agrees to maintain, during the continuance of this contract, vehicular liability and general public liability insurance with limits of liability for- (1) Bodily injury of not less than $ ______ for each person and $ ______ for each occurrence; and (2) Property damage of not less than $ ______ for each accident and $ ______ in the aggregate. (b) The Contractor also agrees to maintain workers’ compensation and other legally required insurance with respect to the Contractor’s own employees and agents. (End of clause)