Defense Base Act Insurance Carriers: What to Look For

As a business owner, you know that there are many different factors to consider when shopping for insurance. With defense base act insurance carriers, it can be especially tricky to determine which company is right for you. Each carrier offers different coverage options and rates, so it can be difficult to make a decision. In this article, we will discuss the top five things to look for when shopping for DBA insurance carriers. We will also provide a glimpse into the high-value coverage Risk Reconnaissance offers government contractors and their crew!

Are you a professional contractor looking to work with the United States government on an assignment overseas? Are you employing U.S. residents to get the job done? If you answered “yes” to both of these questions, it is likely that DBA insurance is not only a prudent and wise investment to make to protect your crew and your business, but it is also a legal requirement as well. (For further information about DBA insurance requirements and your upcoming contract with a U.S. government agency, check out the U.S. Department of Labor’s official website on DBA information.)

If you’ve ever owned a car, a house, or even paid for health insurance, you understand how convoluted the world of insurance can sometimes become. Especially if you have unique circumstances or are assessed at a higher level of risk, plans can become complicated and costs can rise. Between fluctuating rates and premiums, different levels of coverage, and varying degrees of potential as an “allowable cost,” it can be somewhat overwhelming to find the right defense base act insurance carrier to protect your team. In the following section, we will outline the top five things to look for in defense base act insurance carriers so you know how to separate the good carriers from the great.

A good DBA coverage provider is more than just an insurance agent—in fact, the best ones have personal experience working with a military or government entity. With this insider perspective, a carrier is more likely to anticipate your needs as a contractor, accurately assess risk, and offer the best possible premiums and coverage for your mission and personnel. Carriers with a background in military operations are more likely to understand government contracting and the unique sets of risks and uncertainties that come with working overseas. The better your agents’ understanding of what you’re about to go through, the better protected you and your team will be!

Paper-pushing and bureaucratic work can be tedious and slow for an inexperienced DBA insurance carrier. What’s more, an inexperienced insurer might not know how to leverage different forms and policies associated with various government agencies to get their contractor clients the best possible deal. If you’re looking for quality DBA coverage, you want an agency that is working to protect your interests and your employees as well as providing a service.

The primary role of a DBA insurance carrier is to provide their client with a monthly and annual rate that reflects not only the scope of their contract but an honest assessment of any potential risks and hazards that might be involved. This includes potential risks during the course of working hours, and even resting hours as well—as contractors working abroad may never enjoy the relative safety they would in their home country, even when at rest. This has to do with the Zone of Special Danger Doctrine, which protects employees working in potentially dangerous and remote areas, even when they are not “on the clock.”

What good will the best coverage in the world do you if it costs you business expansion or prohibits hiring quality talent by eating up your whole budget? You need to browse Defense Base Act insurance carriers with competitive rates until you find one that can offer the highest-value coverage at the best price. Here at Risk Reconnaissance, we know what it’s like to work with government entities—and we’re on your side when it comes to finding the best coverage with the lowest possible rates and the highest opportunity for reimbursement!

This brings us to our final point, and that is that DBA insurance is often looked on as an “allowable cost.” What this means is that is generally reimbursed—or partially reimbursed—by a contract or grant, given that the cost is “reasonable” and allocable. However, the level of reimbursement you will receive for purchasing DBA insurance depends on the entity you’re partnering with. For example, some only consider the lowest amount of coverage an “allowable cost,” and if you opt for a higher insurance policy anyway, they will only partially reimburse you. A professional DBA insurance agent like those at Risk Reconnaissance will be able to help you leverage the most out of your circumstances with insider knowledge of how these government agencies work!

When it comes to protecting your employees and your business when working on a government contract abroad, there may be no single consideration as critical as your DBA insurance. The quality of coverage you are able to provide your crew can boost morale, retain hard-working employees, and set a positive example for developing leadership—but it doesn’t have to break the bank. If you want to work with the best Defense Base Act insurance carrier, you’ll want to contact the experts at Risk Reconnaissance today! With a history of military service and decades of experience in the insurance industry, we are well-equipped to help you get the most out of your coverage at the best rates, with the highest potential for reimbursement. Call now!