Wrap-Up Insurance for the Capitol Visitor Center, B-290162, October 22, 2002
B-290162, Oct 22, 2002
You asked whether your office is authorized to use appropriated funds to procure wrap-up insurance that would cover (1) the government's risks and (2) the risks of contractors. The general rule is that the federal government self-insures its own risk of loss. 21 Comp. The rationale underlying the rule is that the magnitude of the government's resources makes it more economical and advantageous for the government to carry its own risks than to have them assumed by private insurers. 19 Comp. If you determine that purchasing wrap-up insurance is reasonably necessary or incident to the accomplishment of the construction of the CVC and demonstrate that the rule's rationale does not apply to your situation.