FAR 52.228-5—Insurance-Work on a Government Installation.
Plain-English Summary
FAR 52.228-5, Insurance—Work on a Government Installation, sets the basic insurance framework for contractors performing work on federal property. It addresses four main topics: the contractor’s duty to obtain and maintain required insurance at its own expense; the requirement to notify the contracting officer before starting work that coverage is in place; the need for insurance policies to include an endorsement limiting cancellation or material-change effectiveness so the Government has advance notice; and the flowdown requirement to subcontractors performing work on a Government installation. In practice, this clause is used to protect the Government from uninsured or underinsured losses, especially where contractor activities occur on federal premises and could create liability exposure to the United States. It also gives the contracting officer a way to verify coverage and react if a policy is canceled or materially changed. For contractors, the clause means insurance compliance is not optional or merely internal risk management—it is a contract performance requirement tied to start of work and subcontract administration.
Key Rules
Maintain required coverage
The contractor must obtain and keep in force, at its own expense, at least the kinds and minimum amounts of insurance stated in the Schedule or elsewhere in the contract. The clause does not itself set the coverage amounts; it incorporates whatever the contract requires.
No work before notice
Before beginning performance, the contractor must notify the contracting officer in writing that the required insurance has been obtained. This makes proof of coverage a condition precedent to starting work under the contract.
Cancellation notice protection
The insurance policies must include an endorsement stating that cancellation or any material change adversely affecting the Government’s interest will not become effective until the longer of the period required by state law or 30 days after written notice is given to the contracting officer by the insurer or the contractor.
Flow down to covered subcontracts
The contractor must insert the substance of the clause, including paragraph (c), in subcontracts that require work on a Government installation. Subcontractors must also be required to maintain the insurance specified in the prime contract.
Keep subcontract proof on file
The contractor must retain copies of all subcontractors’ proofs of required insurance and provide copies to the contracting officer upon request. This creates an audit trail and allows the Government to verify subcontractor compliance.
Responsibilities
Contracting Officer
Specify the required kinds and minimum amounts of insurance in the Schedule or elsewhere in the contract, receive the contractor’s written notice before work begins, and request copies of subcontractor insurance proofs when needed. The contracting officer also relies on the required endorsement to receive timely notice of cancellation or material change.
Contractor
Obtain and maintain all required insurance at its own expense for the full period of performance, notify the contracting officer in writing before commencing work, ensure the policies contain the required cancellation/material-change endorsement, and manage subcontractor compliance by flowing down the clause and keeping proof of coverage.
Subcontractor
When performing work on a Government installation under a covered subcontract, obtain and maintain the insurance required by the prime contract and provide proof of that insurance to the prime contractor.
Agency/Government
Protect its interests by requiring appropriate insurance levels for work performed on federal installations and by using the clause to ensure advance notice of policy cancellation or adverse changes that could increase Government risk.
Practical Implications
This clause is often a gatekeeper for mobilization: if the contractor has not provided written notice of coverage, work should not start. Contractors should build insurance review into pre-performance planning so they do not delay the schedule.
The clause depends on the contract schedule for the actual insurance types and limits. A common mistake is assuming the clause itself sets the coverage; in reality, the required coverage may be elsewhere in the contract and must be checked carefully.
The endorsement requirement is easy to overlook. A policy may exist, but if it does not include the required cancellation/material-change notice language, the contractor may still be out of compliance.
Prime contractors must actively flow the clause down to applicable subcontracts and collect proof of insurance. Failing to do so can leave the prime exposed if a subcontractor causes loss or if the Government asks for documentation.
State law matters because the notice period is the longer of the state-prescribed period or 30 days. Contractors should confirm the governing state requirement for the installation location rather than assuming 30 days is always sufficient.
Official Regulatory Text
As prescribed in 28.310 , insert the following clause: Insurance-Work on a Government Installation (Jan 1997) (a) The Contractor shall, at its own expense, provide and maintain during the entire performance of this contract, at least the kinds and minimum amounts of insurance required in the Schedule or elsewhere in the contract. (b) 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 Government’s interest 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 the insurer or the Contractor gives written notice to the Contracting Officer, whichever period is longer. (c) The Contractor shall insert the substance of this clause, including this paragraph (c), in subcontracts under this contract that require work on a Government installation and shall require subcontractors to provide and maintain the insurance required in the Schedule or elsewhere in the contract. The Contractor shall maintain a copy of all subcontractors’ proofs of required insurance, and shall make copies available to the Contracting Officer upon request. (End of clause)