Defense Base Act Insurance
What is DBA (Defense Base Act) Insurance and do I need it?
DBA Insurance is a type of Workers’ Compensation insurance to protect employees, employers, independent contractors and others from damages due to injury, accidents, etc. on the job. Where it differs from “regular” Workers’ Compensation is in its coverage area- DBA is intended to insure those working on public contracts outside the United States. Most frequently, these are contracts with the Department of Justice, the Department of Defense, USAID, and other governmental units.
You will most likely need Workers’ Compensation if you have work sanctioned by the U.S. Government outside of the United States. Most often you will be told that DBA is mandated on a contract you’ve won or, if you’re a subcontractor, your prime contractor will include DBA as part of your suite of required insurance policies. A good rule of thumb: almost any government contract requiring work outside the United States will necessitate DBA Insurance.
How does DBA Insurance work?
DBA functions quite similarly to Workers’ Compensation. When an employee covered under DBA Insurance is injured on the job, his medical costs (hospital, medication, doctors, rehabilitation, evacuation, medical equipment, etc.) will be paid for by DBA Insurance and he will receive payment for lost wages. Lost wages are paid on an “Average Weekly Wage” basis; this calculation can be complicated under certain situations, but it essentially takes the employee’s wages for the past year and divides by 52 to get the “Average Weekly Wage”. The employee will receive 2/3 of his AWW for as long as he is out of work. There are other benefits and payments under certain situations, please inquire for more information.
How does Insurance Brokers of Maryland help me with DBA Insurance?
DBA is a line of insurance that not every agent is familiar with. Here at Insurance Brokers of Maryland, we have the knowledge and experience to effectively handle any DBA situation. Along with that experience, we have access to multiple insurance carriers which write DBA insurance, so you’ll be provided with plenty of options and different pricing structures.
Once we’ve reviewed the SOW (Statement of Work) and estimated payroll for the contract, we can assess the situation and submit the information to various insurance carriers to obtain quotes. There is also a one-page application that must be submitted along with the SOW and payroll estimates.
Not only do we know how to shop for DBA coverage, we’ve handled DBA claims and have gained experience navigating these complicated and delicate situations. Most importantly, we will help you to feel confident and secure when one of your own is injured abroad and in need of attention.
Obviously, this summation does not come close to providing all the pertinent information you will need when searching for a DBA policy. There are many variables to consider when purchasing DBA insurance. Further, if this is your first purchase of DBA insurance, it is also most likely your first experience stationing employees abroad. We’re here to help you consider all the options when it comes to protecting your company, your employees and your livelihood.