45 CFR § 1303.12 - Insurance and bonding.

---
identifier: "/us/cfr/t45/s1303.12"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "45 CFR § 1303.12 - Insurance and bonding."
title_number: 45
title_name: "Public Welfare"
section_number: "1303.12"
section_name: "Insurance and bonding."
chapter_name: "ADMINISTRATION FOR CHILDREN AND FAMILIES, DEPARTMENT OF HEALTH AND HUMAN SERVICES"
subchapter_number: "B"
subchapter_name: "THE ADMINISTRATION FOR CHILDREN AND FAMILIES, HEAD START PROGRAM"
part_number: "1303"
part_name: "FINANCIAL AND ADMINISTRATIVE REQUIREMENTS"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "42 U.S.C. 9801"
regulatory_source: "81 FR 61412, Sept. 6, 2016, unless otherwise noted."
cfr_part: "1303"
---


# 1303.12 Insurance and bonding.

An agency must have an ongoing process to identify risks and have cost-effective insurance for those identified risks; a grant recipient must require the same for its delegates. The agency must specifically consider the risk of accidental injury to children while participating in the program. The grant recipient must submit proof of appropriate coverage in its initial application for funding. The process of identifying risks must also consider the risk of losses resulting from fraudulent acts by individuals authorized to disburse Head Start funds. Consistent with 2 CFR parts 200 and 300, if the agency lacks sufficient coverage to protect the federal government's interest, the agency must maintain adequate fidelity bond coverage.

[81 FR 61412, Sept. 6, 2016, as amended at 89 FR 80073, Oct. 2, 2024]