Which Employers Must Have DBA Insurance?

The main goal of the Defense Base Act (DBA) is to cover qualifying workers on military bases outside of the United States. Its primary purpose is to provide compensation for injuries, disabilities, or death to persons employed under a contract with the United States or any agency of the country. The Act includes public work contracts with the U.S. government for constructing non-military overseas projects such as roads, harbors, and schools. Currently, most contracts with an agency of the U.S. government will require DBA coverage.

DBA coverage is required for employers if they have the following:

• Employees working on military bases or reservations outside of the U.S.;
• Employees working on a U.S. government-funded public works project outside of the U.S.;
• Any employee engaged in a military contract with a foreign government, which the U.S. has deemed necessary to the U.S. National Security;
• Employees that provide any services funded by the U.S. government; and
• Any employees of U.S. military subcontractors who meet the above requirements.

The Department of Labor requires that employers meet these requirements even if their employees are foreign nationals. As such, employers should secure appropriate DBA insurance coverage regardless of their employees’ nationality.

The three major insurance companies providing DBA insurance include:

• ACE-USA,
• AIG, and
• CNA

Additionally, according to the most recent Case Summary Report by the Office of Workers’ Compensation Programs (OWCP), the employers with the highest number of DBA claims include the following:

• Service Employees International, Inc.,
• Fluor ConOps Limited,
• Vectrus Systems Corporation,
• SOC LLC, and
• Fluor ConOps

These corporations span various sectors and include positions in the following industries:

• Information technology,
• Ship construction,
• Research and development,
• Aircraft manufacturing,
• Logistics,
• Recruiter,
• Security,
• Space systems, and
• Testing and quality control

In addition, many other defense contracting jobs fall under the DBA.

Consequences of Failing to Carry DBA Coverage

Employers failing to meet the DBA’s coverage requirements may be liable for fines and risk losing their contracts. In some cases, employers without appropriate coverage may be liable for personal injury or other common law claims.

Waiver of DBA Coverage

In certain limited situations, the Secretary of Labor may waive the agency’s requirement for DBA coverage. However, the DOL’s policy is that waivers do not apply to legal residents or citizens of the U.S. or employees hired in the country. Further, waivers are only valid if the employer secures and offers alternative workers’ compensation benefits pursuant to local law.

Defense Base Act Attorneys

Contact the experienced Defense Base Act lawyers at Friedman Rodman & Frank if you have suffered injuries while working overseas. The attorneys on our team fight for the compensation of injured contractors. DBA claims require a comprehensive understanding of complex federal laws, and our attorneys possess the knowledge, skills, and experience necessary to secure a favorable outcome. In addition to DBA claims, our office represents clients in matters involving Camp Lejeune and the Jones and Longshore Acts. Contact our office at 305-448-8585 to schedule a free consultation with a DBA attorney on our team.