What Is DBA Insurance and What Does It Cover?

DBA insurance is a specialized workers’ compensation coverage for individuals working outside the continental United States under U.S. government contracts. It provides benefits to civilian employees who sustain injuries, illnesses, or death during overseas assignments. This coverage is mandated by federal law, ensuring protections similar to domestic workers’ compensation for those supporting U.S. government operations abroad.

Understanding the Defense Base Act and Its Scope

The Defense Base Act (DBA) extends the Longshore and Harbor Workers’ Compensation Act (LHWCA) to cover civilian employees working overseas. It provides compensation for injury, disability, or death arising from employment under U.S. government contracts outside the continental United States. The Act, initially for military base workers, now includes a broader range of public works and national defense activities.

DBA coverage applies to employees of private employers working on U.S. military bases or lands used for military purposes outside the U.S., including its territories and possessions. It also covers those working under public works contracts with any U.S. government agency, encompassing construction and service contracts related to national defense or war activities overseas. Subcontractors’ employees on such projects are also covered.

The DBA applies to work performed in foreign countries, U.S. territories, and possessions. Employers must secure specific workers’ compensation coverage for these individuals. Failure to do so can result in significant penalties, including fines and potential loss of contracts.

Employers must adhere to reporting requirements under the Act. An Employer’s First Report of Injury or Occupational Illness (Form LS-202) must be filed with the Office of Workers’ Compensation Programs (OWCP) within 10 days if an injury causes a loss of one or more work shifts. This ensures injuries are documented and claims processed.

Core Coverages of a DBA Insurance Policy

A DBA insurance policy provides benefits to covered employees, similar to domestic workers’ compensation but tailored for overseas work. These benefits address medical needs, compensate for lost wages due to disability, and provide financial support to dependents in the event of a work-related fatality. Coverage extends to injuries or illnesses arising in the course of employment.

Medical benefits under a DBA policy cover medical, surgical, and hospital treatment, including nursing and related services. This includes physical therapy, medications, and medical transportation. The insurance carrier pays for covered medical expenses for the duration of the injury or illness.

Disability benefits compensate employees for lost wages due to a work-related injury or illness, calculated as two-thirds (66.67%) of the employee’s average weekly earnings prior to the injury. The type of disability determines payment duration and specifics. Temporary total disability (TTD) benefits are paid when an employee is unable to work but expected to recover, while permanent total disability (PTD) benefits may be paid for life if the employee cannot return to their previous work.

Death benefits are provided to eligible surviving dependents in the event of a work-related death, including funeral expenses up to $3,000. For one eligible survivor, benefits are paid at 50% of the deceased employee’s average weekly earnings. If there are two or more eligible survivors, the benefit rate increases to two-thirds (66.67%) of the average weekly earnings.

Vocational rehabilitation services help injured workers return to suitable employment. The U.S. Department of Labor coordinates these services, which may include training for new occupations and job placement assistance. These programs assist permanently disabled workers who cannot return to their prior positions.

Securing DBA Insurance

Acquiring DBA insurance requires specific information for risk assessment and coverage. Contractors or employers need to provide contract information, including the contract number, work nature, and duration. Employee data is also essential, encompassing the number of employees, their roles, and estimated payroll figures.

The geographic scope of operations requires details on work locations, including countries and military bases. Prior claims history is also requested, helping underwriters assess future risks. Gathering this information is a key step in the application process.

Finding specialized insurance providers is important for securing DBA coverage. Employers should seek brokers or carriers with expertise in government contracts and international insurance. These specialized entities can navigate the complexities of DBA requirements and access authorized carriers.

Once information is assembled, the application process involves submitting details for a quote. Insurer underwriters review documentation to assess risk and provide coverage. After a proposal is issued, the contractor reviews policy terms before binding coverage.