Our firm is bidding on a federal general construction project, NAICS 236220, for a new agency building. The Invitation for Bid (IFB) was posted on SAM.gov and the deadline is next month. We know about the bid bond and the performance and payment bonds that the Miller Act requires for construction contracts exceeding a certain amount. We also understand the Davis-Bacon Act requirements. What I am trying to figure out is the standard insurance coverage that will be required beyond those bonds. We usually carry general liability, workers' comp, and auto, but I am wondering if there are other specific types of coverage or higher limits typically included in federal construction contracts. What insurance requirements are typically included in federal construction contracts?
What insurance requirements are typically included in federal construction contracts?
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Federal construction contracts typically require standard commercial insurance coverage, and the specific types and limits are outlined in the solicitation's Section K. For our janitorial firm, we always see general liability, workers' compensation, and commercial auto insurance listed. The FAR does not dictate specific insurance types or limits, but rather outlines the government's general policy on insurance in FAR Part 28, Bonds and Insurance. The contracting officer sets the specific insurance requirements based on the risks of the project itself. My firm has bid on state and county construction contracts where they wanted professional liability or pollution liability, but that is less common for janitorial work. We always check Section K carefully because if you don't have the right coverage in place, you will not be a responsible prospective contractor.