The end of the United States Army Corp of Engineers (USACE) DBA program is less than a month away—terminating on October 1, 2013. If you are a contractor insured in the USACE program, your coverage will not be renewed at the expiration date of your USACE DBA policy. At least 60 days prior to your expiration date, you should be actively working to secure your replacement DBA Insurance.
One option you may have is to add your USACE contracts to a non-program DBA policy that you already have in place. A non-program DBA policy is for work contracted with an agency that doesn’t have a mandatory DBA program in place. In most cases, you have the option to add your USACE contracts into your non-program DBA policy.
Non-program DBA Rates
Your non-program DBA policy will have DBA rates that were secured for you at the time you purchased the policy. When adding your USACE contract to your non-program policy, the Underwriter will determine the DBA rate for your USACE contract based on the contract information you supply. If you provide different services on your USACE contract than your non-program contracts, it’s likely you will be charged different rates for each individual contract. You should also expect to pay a higher rate if you’ve incurred substantial losses during your USACE contract period. Claims can have an adverse affect on insurance rates, so be prepared to pay a higher rate for the USACE contract work added to a non-program policy.
Payroll Consideration
Another important consideration is payroll reporting. When adding a USACE contract to a non-program policy you’ll want to only report payroll figures for the work on the USACE contract up to the expiration date of the non-program policy. Any remaining period of performance left from your USACE contract will be added to the non-program renewal application. For example: If you have a USACE contract that expires in July 2014, and a non-program DBA policy that expires in March 2014. You’ll only want to add the payroll amount on your USACE contract from now through March 2014 to the non-program policy. The remaining three months of work on the USACE contract (April, May and June 2014) will roll into the non-program policy’s renewal in March 2014.
Get Started Today
Adding your USACE contracts into a non-program DBA policy may be a great option for you. If you have a current non-program DBA policy and would like us to perform a review, we are happy to do so. Or if you do not have an existing non-program policy and need assistance placing your DBA coverage, the LATITUDE DBA Insurance program is an excellent resource for contractors seeking DBA Insurance in the open market. Our team of experts has more than 25 years of experience and extensive knowledge of the DBA marketplace. If your insurance is currently with the USACE DBA program and expires October 1, 2013 or after, contact the LATITUDE DBA Insurance program today to explore your options.
