Section H 
Vessel liability. When contract performance involves use of vessels, the 
contracting officer shall require, as determined by the agency, vessel 
collision liability and protection and indemnity liability insurance. 
(End of Clause) 
H.12.2   CAR 1352.228 71 Deductibles Under Required Insurance Coverage (March 
The following requirements also apply to this contract: 
The Contractor is required to present evidence of the amount of any 
deductibles in its insurance coverage. 
For any insurance required pursuant to 1352.228 70, Insurance 
Coverage, the Contractor's deductible is not allowable as a direct or 
indirect cost under this contract. The Government is not liable, and cannot 
be invoiced, for any losses up to the minimum amounts of coverage 
required in subsections (a) through (d) above. If the Contractor obtains an 
insurance policy with deductibles, the Contractor, and not the 
Government, is responsible for any deductible amount up to the minimum 
amounts of coverage stated. 
If the Contractor fails to follow all procedures stated in this subsection and 
in FAR 52.228 7(g), any amounts above the amount of the obtained 
insurance coverage which are not covered by insurance will not be 
reimbursable under the contract. 
(End of Clause) 
H.12.3   CAR 1352.228 72 Deductibles Under Required Insurance Coverage (March 
When the Government is injured, wholly or partially as a result of the Contractor's 
actions and such actions are covered by the insurance required by 1352.228 70, 
Insurance Coverage, the Government is entitled to recover from the Contractor the full 
amount of any such injury attributable to the Contractor regardless of an deductible. The 
Contracting Officer may offset the amount of recovery against any payment due to the 
(End of Clause) 



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