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Does Your Company Need Defense Base Act Insurance?

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Are you a contractor who provides services for the United States government abroad? If so, then Defense Base Act Insurance likely applies to you and your employees. The Defense Base Act (DBA) is federal legislation that provides workers' compensation benefits specifically to United States civilian contractors who are working on military bases overseas. This important act provides protection for you and your employees should they be injured during their contracted work with the US military.

What Does DBA Insurance Cover?

Defense Base Act Insurance provides similar benefits to standard workers' compensation insurance. Your employees who are covered under the Defense Base Act will generally receive benefits including medical coverage for injuries received in the course of their work and disability coverage should the injuries prevent them from working. Should the tragedy strike, Defense Base Act Insurance also provides death benefits to the survivors of any worker who is killed while conducting covered work. Both disability and death benefits are subject to a weekly maximum.

Who Does DBA Insurance Cover?

The Defense Base Act is designed to provide coverage for workers contracted by the United States government and working outside of the US. As the name implies, its original intention was to cover workers performing jobs on United States bases overseas, but in most cases, it also covers workers involved in any overseas public works project that is being run by the US government.

The Defense Base Act does not require workers to be employed by a company that is directly contracted by the US government. Workers who are employed by subcontractors are eligible for coverage under the Defense Base Act as well. Additionally, the DBA does not require the workers that it covers to be US citizens. Any employee working for a US company that otherwise meets the requirements of the Defense Base Act is eligible for coverage, even if they are not currently a US citizen.

Who Is Responsible for Providing DBA Coverage?

If your company is contracted with the US government as described above, then you are responsible for providing Defense Base Act coverage for your employees. The Defense Base Act mandates that all contractors provide this coverage for their employees, and that responsibility rests solely with the company providing the contract services and not with the US government.

The requirement to purchase Defense Base Act coverage applies to subcontractors as well. If you are subcontracting on a project for the US government overseas then you are required to provide DBA insurance coverage for your employees; the coverage for the prime contractor does not apply to you or your employees.


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