A subcontract may reference FAR 52.228-5 and then separately require workers' compensation, employer's liability, general liability, automobile, professional, cyber, umbrella, or other coverage. The clause text alone may not reveal the limits or prime-specific endorsements the subcontractor must obtain.
Before signing, compare the required coverage with current policies and ask the broker about exclusions, additional-insured wording, cancellation notice, deductibles, and whether the policy actually responds to the contractual risks being accepted.
FAR 52.228-5 expressly reaches qualifying subcontracts
The clause requires the prime to insert its substance in subcontracts requiring work on a Government installation and requires subcontractors to maintain the insurance specified in the Schedule or elsewhere in the contract. The prime must retain proof of subcontractor insurance for Government review.
Official source: FAR 52.228-5 — Insurance—Work on a Government Installation.
Find the limits and endorsements outside the clause
- Required coverage types and per-occurrence or aggregate limits.
- Additional-insured status requested by the prime or owner.
- Primary and noncontributory wording.
- Waiver-of-subrogation requirements.
- Professional, pollution, cyber, aviation, maritime, or other project-specific coverage.
- Tail or completed-operations periods that survive subcontract completion.
Insurance limits do not automatically cap liability
A subcontract can require $2 million of insurance while imposing contractual liability far above that amount. Review insurance, indemnity, warranty, consequential-damages, cyber, and limitation-of-liability clauses together so the business knows which risks are insured, uninsured, capped, or potentially unlimited.
Resolve coverage before mobilization
If a required endorsement or limit is unavailable or materially increases premium, that is a pricing issue before award. A clause requiring evidence before work begins can delay access to the installation if the insurance package is not ready.
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