Defense Base Act (DBA) insurance is a solution used by contractors from the United States government to cover subcontractors and workers against injuries inflicted as they work outside the country. With DBA, your insurance company is responsible for expenses like medical bills or evacuation costs when your team is working overseas, especially in a risky environment.
Fundamentals of Defense Base Act Insurance
Congress enacted the Defense Base Act in preparation for potential attacks. Its purpose was to cover contractor employees who put their lives at risk and sometimes sustained debilitating injuries working overseas without compensation. Nowadays, it covers several categories of US citizens and civilian workers. The first category includes private contractors working on any military base and other properties that the US military utilizes overseas. Employees working on public contracts outside the US, like construction, with any recognized agency also need DBA insurance. That means if you get to work on a build-bridging project overseas under a US army contract, DBA should cover you.
Furthermore, DBA is also necessary for projects that have been approved and receive funding from the United States Foreign Assistance Act. The contracts in this scenario involve selling machinery, military inventory, and related services to allies of the US. If these activities take place outside the US, DBA insurance is essential. Finally, employers from the US offering welfare and other related services in other nations on behalf of the United States military also get included in DBA insurance.
What Happens When You Fail To Comply With DBA Requirements
As an employer, you will face hefty penalties when any DBA-eligible workers sustain injuries without coverage. In such a scenario, you will compensate the affected employees with amounts similar to those they should have received from DBA insurance. If you cannot pay the injured employees, they may file a damages claim against your organization. And, when fighting such a claim, you are not allowed to use any worker's negligence to justify injury or argue that the claimant assumed injury risk during employment.
Find a Reputable Broker
Now that you understand the essential nature of DBA insurance, the next step is finding a good broker. Before choosing a DBA insurance broker, scour the internet and other resources for reviews and feedback. Then request and contact references from the insurance provider you choose to determine if their services are top-notch. Moreover, it's always advisable to go with a broker specializing in DBA insurance. They will bring a more refined experience to the table and ensure you get optimum services.
Share9 August 2021
I still remember the first time I had to chose an insurance policy; I was 17 years old and had just saved up enough money to afford my very first car. I was so excited to begin driving, but overwhelmed with all of the different auto insurance options. My father helped me chose a full-coverage policy that would cover the cost of my car if it were to become damaged in an accident. When I inevitably caused a small fender-bender as a new driver, my insurance company paid for my car repairs, so it sure was the best policy for me! Now that I am older and have learned a lot about home insurance and other types of insurance, I thought I would make a blog to help others who need insurance advice, like what my dad gave me. I hope I can help you make wise insurance decisions!