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B-204486 1 (1982-01-19)

handle is hein.gao/gaobadpju0001 and id is 1 raw text is: OECISION FILE: B-204486 THE COMP-i-AOLLER GENERAL OF THE UNITEO STATES WASHINGTON, D.C. 20548 DATE: January 19, 1982 MATTER OF: FBI Insurance from Private Firms in Undercover Operations DIGEST: 1. The Federal Bureau of Investigation may purchase insurance for proprietary businesses and chattels used in its undercover operations when it determines that the insurance is necessary for the success of an undercover operation or protection of its agents. The Government policy of self-insurance does not apply when the purpose of obtaining the insurance is other than protecting the United States from risk of financial loss. 2. The purchase of insurance by the Federal Bureau of Investigation in its undercover operations is a neces- sary expense of the Bureau in detecting, investiga- ting and prosecuting crimes against the United States, when the Bureau determines that insurance is essen- tial to the success of undercover operations. Spe- cific authority of the Bureau in undercover operations to lease space, establish or acquire proprietary corpo- rations or businesses and operate them on a commercial basis, and use proceeds from undercover operations for necessary and reasonable expenses incurred includes authority to obtain insurance. This responds to a Federal Bureau of Investigation (the Bureau) request for an opinion about whether it can purchase insurance from private firms in its undercover operations. For the reasons given below, we conclude that the Bureau is authorized to obtain this insurance. In its submission, the Bureau informed us that it has found it increasingly desirable, if not necessary, to obtain insurance in un- dercover operations involving proprietary businesses and chattels such as rental vehicles. The Bureau maintains that insurance is necessary to the success of undercover operations and is frequently essential to the maintenance of security and the protection of individual undercover agents. The Bureau set forth the following as examples of alternative methods which could be used for the purchase of private insurance:

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