Defense Base Act Insurance > mandatory for most overseas government & department of defense contractors
Defense Base Act
What is the Defense Base Act?
Due to the recent abundance of Department of
Defense and other Government contracts being
awarded, especially in Afghanistan and Iraq, it
is more important than ever that companies are
familiar with the Defense Base Act.
We hope this site can answer all of your
questions about DBA insurance. If you have any
suggestions or questions regarding this
resource, please contact us.
Defense and other Government contracts being
awarded, especially in Afghanistan and Iraq, it
is more important than ever that companies are
familiar with the Defense Base Act.
We hope this site can answer all of your
questions about DBA insurance. If you have any
suggestions or questions regarding this
resource, please contact us.
Established in 1941, the primary goal of the Defense Base Act was to cover workers on
military bases outside the United States.
The act was amended to include public works contracts with the government for the building
of non-military projects such as dams, schools, harbors, and roads abroad. A further
amendment added a vast array of enterprises revolving around the national security of the
United States and its allies.
Today, almost any contract with an agency of the U.S. government, for work outside the U.S.,
whether military in nature or not, will likely require Defense Base Act coverage.
military bases outside the United States.
The act was amended to include public works contracts with the government for the building
of non-military projects such as dams, schools, harbors, and roads abroad. A further
amendment added a vast array of enterprises revolving around the national security of the
United States and its allies.
Today, almost any contract with an agency of the U.S. government, for work outside the U.S.,
whether military in nature or not, will likely require Defense Base Act coverage.
Who Requires DBA Coverage?
- Any employee working on a military base or
reservation outside the U.S. - Any employee engaged in U.S. government
funded public works business outside the
U.S. - Any employee engaged in a public works or
military contract with a foreign government
which has been deemed necessary to U.S.
National Security. - Those employees that provide services
funded by the U.S. government outside the
realm of regular military issue or channels. - Any employees of any sub-contractors of
the prime or letting contractor involved in a
contract like numbers 1-4 above.
What are the consequences
of not carrying DBA
Coverage?
of not carrying DBA
Coverage?
Failure to obtain DBA insurance carries stiff
penalties.
All government contracts contain a provision that
requires bidding contractors to obtain necessary
insurance. Failure to do so will result in fines and
possible loss of contract.
The additional and most severe penalty is that
employers without DBA coverage are subject to
suits under common law, wherein common law
defenses are waived. In other words, the
claimants or their heirs need only file suit and do
not have to prove negligence.
Lastly, all claims may be brought in Federal
Court and are against the insured directly.
According to Ashcraft & Gerel, LLP, the leading
national law firm handling Defense Base Act
cases for injured workers, these cases can be
very costly, and should be a source of great
concern for contractors operating overseas.
Some Information Courtesy of AIG WorldRisk
penalties.
All government contracts contain a provision that
requires bidding contractors to obtain necessary
insurance. Failure to do so will result in fines and
possible loss of contract.
The additional and most severe penalty is that
employers without DBA coverage are subject to
suits under common law, wherein common law
defenses are waived. In other words, the
claimants or their heirs need only file suit and do
not have to prove negligence.
Lastly, all claims may be brought in Federal
Court and are against the insured directly.
According to Ashcraft & Gerel, LLP, the leading
national law firm handling Defense Base Act
cases for injured workers, these cases can be
very costly, and should be a source of great
concern for contractors operating overseas.
Some Information Courtesy of AIG WorldRisk
If your company or client
requires Defense Base Act
coverage, or is vying for a
contract that would require it,
we would love the opportunity
to assist in the purchase.
We have long standing
relationships with several of
the world's largest Defense
Base Act insurers that allow us
to secure great deals on DBA
coverage for our clients in a
very short amount of time.
Take advantage of our
expertise - Fill out the form on
the left and we will contact you
as soon as possible.
requires Defense Base Act
coverage, or is vying for a
contract that would require it,
we would love the opportunity
to assist in the purchase.
We have long standing
relationships with several of
the world's largest Defense
Base Act insurers that allow us
to secure great deals on DBA
coverage for our clients in a
very short amount of time.
Take advantage of our
expertise - Fill out the form on
the left and we will contact you
as soon as possible.
Let us Secure Your DBA Coverage
Call Toll Free: 1-866-961-2322
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