Navigating Lowball DBA Settlement Offers

What is the Defense Base Act?

The DBA is an extension of the Longshore and Harbor Workers Compensation Act (LHWCA). The LHWCA provides workers’ compensation benefits to qualifying maritime workers and longshoremen and can provide death benefits to their surviving family members. Congress passed the DBA in 1941 to extend those same workers’ compensation benefits to civilian contractors who were injured or killed while performing work for the U.S. military. The DBA requires that employers obtain DBA insurance to provide coverage for their DBA-related workers’ compensation claims.

What Are the Compensation Rates for Workers Under the DBA

Defense Base Act (DBA) insurance companies typically pay military contractors and other DBA-qualified individuals while they are out of work at a very high rate. This is because private military contractors often find themselves working in deadly zones of hostility, such as Afghanistan, Iraq, Somalia, and Syria. As a result, such contractors typically make much more than workers stateside and are paid at the maximum compensation rate, approximately $1,510.76 per week, while they are injured.

Why Insurance Companies Make Lowball Offers

Paying such a high compensation rate to injured contractors is expensive and decreases the insurance company’s profits. DBA insurance companies are private businesses operating to maximize their profits, and they are highly incentivized to settle with DBA claimants quickly for a low settlement total. The early lowball settlement offer is a common tactic used by DBA insurance carriers to limit their payments to claimants and save themselves money. The less they pay out and the faster they resolve a case, the more money they end up saving.

DBA insurance carriers will often engage in hardball negotiation tactics right off the bat, offering extremely low settlement offers early in the process to claimants hoping that the contractors will take the first settlement offer they see. Once a settlement is locked in, the insurance carrier is relieved of any further compensation and is not responsible for future medical care relating to the injury in the claim, motivating them to speed through a deal. Unfortunately, the claimant is barred from pursuing any further claims regarding that injury once a settlement is reached. It is important to remember that the DBA insurance companies are structured to be as profitable as possible, not to take care of claimants. The lower the settlement amount, the more money the DBA insurance carrier saves. When navigating the DBA claims process, it is essential to have an experienced DBA attorney to maximize the amount you receive.

Do You Need Help with Your Defense Base Act Claim?

If you or someone you love has or is considering filing a Defense Base Act claim, let the attorneys at Friedman Rodman & Frank fight to help you recover the damages you deserve. Expenses and injuries sustained on the job can quickly become overwhelming, and having an experienced roster of DBA attorneys by your side can make a world of difference in the compensation you receive. Our experienced attorneys have successfully represented injured workers at every stage of their claims, ensuring that they obtain the compensation that they deserve. With our team, you can have faith that your claim is being pursued properly. If you have questions about your case, call us today at 877-627-5116 and schedule a free and no-obligation initial consultation with a DBA lawyer.