§7317 Hazardous Research Projects: Indemnification of Contractors

Summary

With the Secretary's approval, the United States can agree to cover certain losses for a contractor doing unusually dangerous research. That protection only applies to harm that comes directly from doing the contract and only when the harm is not already covered by the contractor’s required financial protection. The cover can pay claims from third people for death, injury, or property damage (but not the contractor’s employees under state or federal workers’ compensation at the worksite) and can pay for loss or damage to the contractor’s own property caused by the unusually hazardous risk. A contract that gives this protection must require the contractor to tell the United States about any claim and to let the United States run or help with the defense if it chooses. The Secretary must agree the payment amount is fair before money is paid. Payments can come from money set aside for the contract, from available research funds, or from money specifically appropriated for such payments. Contractors must keep financial protection up to the largest private insurance amount available (or a lower amount the Secretary allows), using insurance, self-insurance, contracts, or combinations. The Secretary may hire private insurers and make advance payments when needed. The protection does not create new legal rights for other people. "Contractor" also includes any subcontractors.