Are you a U.S. Government contractor with employees who travel overseas or permanently deploy? If so, let’s start the New Year off right and perform an insurance check-up for your overseas exposures. This article is the first in a series of articles designed to help you review your foreign and DBA insurance coverage needs and plan for the future.
DBA Insurance Coverage
Did you purchase DBA coverage for all contracts that require work OCONUS?
DBA coverage is required for all USG funded contracts (NATO/NAMSA contracts should be reviewed by a DBA attorney to determine whether or not DBA applies) regardless of whether or not the DBA FAR clause 52.228-3 is included in the actual contract document. Failure to provide DBA coverage for an eligible contract can result in substantial fines and potential jail time for corporate officers. In addition, it would result in your company being responsible to pay the benefits normally provided under a DBA policy.
If you’ve already purchased DBA insurance coverage, did you report the payroll only for the period of time the employees are outside the U.S.?
DBA premiums are based on the direct payroll of your employees while working OCONUS under the contract so it is important that you pro-rate the payroll accordingly to avoid being overcharged for your DBA premium.
Do your employees know the claims contact information in case one of them is injured overseas and requires medical evacuation services?
It is important that you provide the DBA carrier’s claim reporting information, including the Emergency Assistance Provider’s contact info, to your employees that travel OCONUS as well as to the project manager in the country of deployment. You should also establish emergency claim reporting procedures for your company so that all parties involved, including your HR Department, are knowledgeable of the DBA claims handling procedure. By doing so you will help ensure timely emergency assistance and claims filing.
These are just a few things that should be considered regarding DBA insurance coverage for the U.S. contractor working abroad. For a full review of your insurance program, please contact Sara Payne, a 25-year veteran of DBA insurance program administration, at 800-291-6182.
COMING NEXT MONTH: an insurance check-up for your Business Travel Accident & Medical Expense Coverage