Instructions for Complete Defense Base Act Application

As a government contractor, it is important to be aware of the Defense Base Act (DBA) and what it covers. DBA insurance provides coverage for employees working overseas on U.S. military bases or with other U.S. government agencies, and contractors should understand if they need this coverage and how to go about getting it. In this article, we will provide instructions for complete Defense Base Act application and provide details for the reimbursement process for contractors who have to pay for their own DBA insurance coverage.

Are you a contractor working with the United States government sending American employees abroad to complete an assignment? If so, chances are you will more than likely be legally required to acquire DBA insurance. Essentially an extended version of domestic workers’ compensation coverage, this type of insurance provides protection for contractors and their employees alike when working for a U.S. government entity abroad. Unlike regular, domestic workers’ compensation, which typically applies to regular working hours, DBA coverage is typically around the clock to protect employees at all times when working abroad.

There are exceptions to the rule, however—the Secretary of the Department of Labor (DOL) will sometimes issue a waiver to contractors not working with United States citizens hired in America. It is important to note that a waiver will not be granted if the employees are legal residents or citizens of the U.S. Additionally, a waiver will only be accessible to contractors who provide some alternative form of workers’ compensation coverage in accordance with the laws of the local country. Even if they are working with foreign nationals and have been offered a waiver, U.S. government contractors can still voluntarily provide DBA insurance coverage for their waived crewmembers.

Depending on the government agency that a contractor works with, they may be able to write the costs of their DBA coverage off as an “allowable cost.” Generally speaking, this means the expense of their DBA insurance will be reimbursed, as long as the cost is “reasonable.” Do your research before settling on the best DBA insurance carrier for your job and understand the expectations of the government agency you will be working for. Some only reimburse the lowest possible standard of coverage, or will offer partial reimbursement for plans that go above and beyond the bare minimum.

The requirements for applying for Defense Base Act insurance coverage are the same as those required by the Longshore Act, as detailed in the LHWCA (or Longshore and Harbor Workers’ Compensation Act). These articles dictate that the appropriate workers’ compensation benefits must be provided in accordance with the LHWCA standards or for the employee to be “permissibly self-insured.” Contractors must understand that if they fail to provide their employees with DBA insurance, they will be liable in the event of accidents, injuries, or death, and therefore financially responsible.

Fortunately for U.S. government contractors, the process of applying to receive DBA coverage is relatively simple—however, there are a few key pieces of information your insurance carrier will need to gather from you in order to accurately assess risks and your associated cost of coverage.

Some examples of information an insurance carrier will need to collect from the contractor include:

·      Estimated cost of payroll over a 12-month period

·      Complete title of the company and their mailing address

·      Telephone and fax numbers

·      Best point of contact, and their phone number and email

·      Official contract number

·      Dates of coverage

·      Description of the nature of the work to be done

·      Primary geographic location where the mission will be carried out

In gathering this information, a quality DBA insurance provider will be able to connect you with the best possible coverage for your task at the lowest possible rates, protecting your business and your crew over the course of your work. To get started on an application, click here!

When it comes to finding the right agency and underwriter for your upcoming mission, you’ll want to rest assured you’re getting the best possible coverage at the best rates. You need an insurance carrier capable of understanding and anticipating your needs, accurately calculating risks, and experienced in dealing with various different U.S. government agencies. Here at Risk Reconnaissance, we’ve been at the forefront of the DBA insurance industry and, with a background in military service, we know how to help our clients bring their crew home safely after a successfully completed mission. For more on what information every U.S. contractor should know before seeking DBA insurance, click here!

Want to know more about what makes a great DBA coverage provider? Check out our recent article on the topic! Or, contact us today to schedule a consultation and learn all that we can do for you!