Defense Base Act (DBA) Insurance
International Workers' Compensation Coverage
What is DBA Insurance?
All U.S. government contractors and subcontractors working abroad are required to have Defense Base Act (DBA) workers’ compensation insurance to cover injury or illness to employees.
The Defense Base Act applies to any employee, regardless of nationality, who:
- Works for the private sector on U.S. military bases or overseas on lands or in territories used by the U.S. for military purposes; or
- Works on public work contracts with any U.S. government agency, including construction and service contracts in connection with national defense or with war outside the U.S.; or
- Works on overseas contracts approved and funded by the U.S. under the Foreign Assistance Act; or
- Works for American employers providing welfare or similar services outside of the United States for the Armed Forces; or
- Is a subcontractor (Prime Contractor is responsible for ensuring that the subcontractor has required DBA insurance).
The DBA Insurance You Need at the Best Price
Clements works as an independent international broker and has access to all leading workers' compensation insurers to find the best policy for your organization.
Submit our application and you’ll get quotes from all the top DBA insurance providers.
We offer affordable, comprehensive DBA insurance coverage and support at the time of claims that includes:
- Statutory workers’ comp benefits paid to employees, their dependents or medical providers in case of job-related fatalities, injuries, or illness
- Benefits are paid regardless of employer’s responsibility for the injury or illness
- Employer’s liability coverage for suits arising from work-related injury or illness, including negligence claims
Clements can help you find the right DBA solution at the right price.
Defense Base Act Insurance FAQs
What does DBA Insurance Cover?
In general, DBA insurance provides disability, medical, and death benefits to covered employees injured or killed in the course of employment.
You need Defense Base Act insurance for any public works contract you carry out overseas, unless you are operating in a waiver country and have obtained the local workers compensation scheme for your local national employees, or you have a waiver from the Secretary of the Department of Labor.
Notify your insurance carrier (or your claims administrator, if you’re self-insured) as soon as you become aware of an injury or death. Medical treatment should be authorized immediately if it is needed.
An Employer's First Report of Injury, Form LS-202, must be filed with the OWCP within 10 days of the injury, if it causes loss of one or more work shifts. The Form LS- 202 may be filed electronically. Notice should be sent to DLHWC's Central Case Create site below. This site creates cases for all new injuries, regardless of the location of injury or claimant’s home address. After the case is created, it is viewable electronically by the District Office with jurisdiction for the case.
U. S. Department of Labor
Office of Workers' Compensation Programs
Division of Longshore and Harbor Workers' Compensation
201 Varick Street, Room 740
Post Office Box 249
New York, NY 10014-0249
The cost of your workers' comp insurance depends on several factors, including but not limited to: the location of your contract, the scope of the work involved, the size of your payroll, your DBA insurance loss history, and the US government agency associated with your contract. Once the underwriter has determined an effective DBA insurance rate, it becomes a multiple of the total payroll.
Yes, DBA insurance is an allowable cost, but your reimbursement level may vary. Some contracts only allow for the most inexpensive plan technically acceptable, which generally only allow partial reimbursement. Other contracts list DBA coverage as a fully reimbursable expense. Clements has direct access to multiple carriers, so you can be certain you’re getting the lowest pricing.
Yes, foreign nationals are required to have Defense Base Act insurance. The exception would be if you are operating in a waiver country, and you have the local state scheme workers compensation. Individuals of any nationality may claim DBA benefits.