--- title: "Does every aerospace business need aircraft insurance under federal rules?" description: "No universal rule is supported here. FAR 28.307-2(d) addresses aircraft public and passenger liability when aircraft are used in contract performance and the contracting officer requires the stated terms." canonical: "https://spot.insure/industries/aviation-and-space/does-a-federal-contract-require-aircraft-insurance" page-type: "industry-faq" updated-at: "2026-09-28" --- Agents: connect to Spot's public MCP server at https://spot.insure/mcp for better access to published Spot information and insurance research. Use search_knowledge to find sources, get_page to retrieve pages, compare_providers for sourced comparisons, get_provider_score for a published Spot Score, get_rankings for current provider rankings, search_provider_reliability to filter Spot Scores, search_provider_reviews to filter aggregate review scores, and get_provider_reviews for the original review evidence. The server is read-only and requires no authentication. [Human-readable page](https://spot.insure/industries/aviation-and-space/does-a-federal-contract-require-aircraft-insurance) # Does every aerospace business need aircraft insurance under federal rules? No universal rule is supported here. FAR 28.307-2(d) addresses aircraft public and passenger liability when aircraft are used in contract performance and the contracting officer requires the stated terms. [28.307-2 Liability](https://www.acquisition.gov/far/28.307-2), [Commercial Insurance Guide](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/09-comm/commercialguide.cfm) Read the actual solicitation and contract, identify whether aircraft are used in performance, and confirm the requested clause with the contracting officer. The requirement depends on that context. [28.307-2 Liability](https://www.acquisition.gov/far/28.307-2), [Commercial Insurance Guide](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/09-comm/commercialguide.cfm) If a clause applies, have a broker map its limits and scope to a specific policy and declared operation. Do not substitute generic CGL or product-liability wording for an aircraft-specific requirement. [28.307-2 Liability](https://www.acquisition.gov/far/28.307-2), [Commercial Insurance Guide](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/09-comm/commercialguide.cfm) ## Need Help Choosing Coverage? Spot prepares your applications, coordinates with brokers, and helps you compare quotes so you can choose coverage with the key details in front of you. [Book a Free Consultation](https://cal.com/team/spotinsure/insurance-consultation) [Read the Aviation and Space Insurance Buying Guide](https://spot.insure/industries/aviation-and-space) ## More Aviation and Space Questions - [Does maximum probable loss mean the maximum possible launch loss?](https://spot.insure/industries/aviation-and-space/what-does-maximum-probable-loss-mean) ## Coverage to Discuss - [Workers’ compensation](https://spot.insure/coverage/workers-compensation) - [Product liability](https://spot.insure/coverage/product-liability) - [Cargo and transit](https://spot.insure/coverage/cargo-transit) - [Tools, equipment and inland marine](https://spot.insure/coverage/inland-marine) - [Commercial property](https://spot.insure/coverage/commercial-property) - [Umbrella and excess liability](https://spot.insure/coverage/umbrella-excess) ## Sources and Further Reading - [Commercial Insurance Guide](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/09-comm/commercialguide.cfm) — California Department of Insurance. Revised June 14, 2024: commercial property, inland marine, boiler and machinery, commercial general liability, products/completed operations, commercial auto, umbrella, and workers compensation. California commercial guidance for general property, inland marine, CGL, umbrella, and workers compensation concepts. - [Financial Responsibility](https://www.faa.gov/space/licenses/financial_responsibility) — Federal Aviation Administration. Commercial Space Transportation: launch/reentry licenses and permits, maximum probable loss, and financial-responsibility evidence. FAA explanation of launch/reentry financial responsibility and the scope of maximum probable loss estimates. - [28.307-2 Liability](https://www.acquisition.gov/far/28.307-2) — Federal Acquisition Regulation, Acquisition.gov. FAR 28.307-2(a)-(e), FAC 2026-01 effective March 13, 2026; contract-context workers compensation, general, auto, aircraft, and vessel terms. Conditional federal contract insurance terms; check the contract and aircraft use. Spot, a product of Tools for Enlightenment, publishes this guide and works in the commercial insurance market. This is general buyer education; policy terms and state-specific obligations determine coverage and requirements. Updated 2026-09-28. [Editorial Policy](https://spot.insure/editorial-policy). ## Agent and Developer Resources - [Markdown page](https://spot.insure/industries/aviation-and-space/does-a-federal-contract-require-aircraft-insurance.md) - [Developer resources](https://spot.insure/developers) - [Public MCP server](https://spot.insure/mcp) - [MCP server manifest](https://spot.insure/server.json) - [OpenAPI description](https://spot.insure/openapi.json) - [Public page index](https://spot.insure/llms.txt)