As contractors prepare for work overseas, there are a number of things that should be considered before deployment of employees to ensure a streamlined process for both the Human Resources department and the employees.

Employer Preparation Checklist

• Perform thorough pre-deployment physicals to establish a baseline of the employees’ health, making note of any pre-existing physical conditions. The mental health of employees should also be evaluated. A post-deployment physical and mental health examination should also be performed upon the employee’s return to the U.S. in order to detect any changes in the employee’s well-being.
• Verify U.S. family emergency contact information for employees to use as a resource in the event of a medical emergency. Beneficiary designations for each employee should also be notated.

• Establish detailed procedures regarding how to handle medical emergencies. Procedures should include:

 Contact information for the HR department and the overseas Project Manager. Both the employer and the employee should have hands-on access to this information for quick reporting of any medical situations that may occur.

 The name of the HR associate responsible for notifying the next of kin should a medical emergency arise.

 Claim filing procedures and the DBA Insurance carrier or agent’s information. Both the HR department and the overseas Project Manager should have this information readily available should a medical situation occur.

•  Establish proper notification procedures for the next of kin in the event of an employee’s death. Detailed procedures for returning the deceased employee to the U.S. should also be in place. The insurance carrier responsible for medical emergency claims would also be responsible for coordinating the repatriation of the deceased employee’s remains to his or her country and city of residence.

Employee Preparation Checklist

• Compile all appropriate insurance claim reporting information, including DBA claim reporting instructions and personal health insurance coverage, and keep it in an easily accessible place. This information will be invaluable when looking to obtain the medical treatment should an injury occur.
• Undergo a pre-deployment physical to determine “fit-for-duty” status.
• Refill maintenance prescriptions taken on a routine basis and have a dental exam prior to deployment. Overseas pharmacies and dental practitioners are often either hard to come by or are not up to par by western standards.
• Pack appropriate attire for the climate in the country of deployment. It is advisable to pack an extra set of all necessity-type items.

Following these pre-deployment procedures will be beneficial to both employees and employers alike, and will make for a more efficient claims processing if the need arises.

As the DBA Insurance broker for Allied World Assurance, the LATITUDE DBA Insurance team has a deep understanding of the complexities of Defense Base Act coverage, including claims management and assisting contractors in pre-deployment protocol. Contact LATITUDE for a DBA Insurance needs assessment today.

Defense Base Act Insurance is a form of Workers’ Compensation Insurance and, as such, requires that an injury be occupational in nature in order for a claim to be payable—in other words, caused by engaging in the assigned work. DBA Insurance is required by law for all contractors and their employees performing work OCONUS. However, when planning for work abroad, contractors should also take into consideration any non-occupational injuries or claims that may affect their employees while deployed, such as heart attack or stroke. How would medical care be provided to employees who suffer these types of ailments?

A Business Travel Accident (BTA) policy is available through several insurance carriers to cover such ailments and can be customized to fit the specific needs of the contractor, including Medical Expense, Medical Evacuation and Accidental Death & Dismemberment coverages.

Medical Evacuation – provides coverage for the cost of transporting an ill or injured employee to a neighboring country or back to their home country if the illness or injury is deemed too serious to treat at the location where it first occurred. This request must be made by the treating physician and authorized by the BTA Insurance carrier.

Medical Expense – provides coverage to pay for non-occupational injuries or ailments for employees deployed overseas. When choosing a Medical Expense limit, contractors should understand that this type of insurance is intended to provide coverage until the employee stabilizes and is able to be transported back to their home country, at which point the Employer’s Group Medical plan would take over to provide benefits and coverage. Medical Expense coverage also covers illnesses where hospitalization isn’t required, such as doctor visits for cold and flu.

Accidental Death and Dismemberment (AD&D) – coverage available in addition to the Disability and Death benefits provided under the DBA policy. The AD&D limit offered under this plan is typically commensurate to the annual salary of the employee, with the maximum limit available being twice or three times the employee’s annual salary.

AD&D coverage typically excludes coverage for Acts of War and Terrorism. However, for an additional premium this exclusion can be removed from the policy in order to provide coverage as a meaningful benefit for employees deployed to military bases or volatile environments. Payments under this AD&D coverage are based on a sliding scale dependent on the extent of the injury.

Since the death benefit provided under DBA Insurance is not payable for singles unless they have legal dependents, a legal obligation such as paying alimony to an ex-spouse, or parents who are legally dependent on the deceased employee’s earnings, AD&D coverage is also a good source for death benefits for unmarried employees. In the case of a covered employee’s death, the full AD&D policy limit is payable to their designated beneficiary.

Please note: When purchasing BTA coverage, it’s a good idea to inquire about what assistance provider the BTA carrier utilizes. In the event of a claim, the fewer number of parties involved, the better. Having the same assistance provider for both the BTA and DBA policies would be ideal so there is only one phone call for the employee to make, regardless of the type of claim.

The LATITUDE DBA Insurance Program, the DBA Insurance broker for Allied World Assurance, is a great source for DBA Insurance. Our team has a deep understanding of the complexities and unique business needs associated with government contracts and deployment overseas, and can assist contractors in creating an insurance plan that protects their business and its employees against overseas exposures. Contact LATITUDE DBA Insurance today!

Employees who work overseas under U.S. Government contract are entitled to benefits under the Defense Base Act. Benefits are similar to those provided by domestic Workers’ Compensation Insurance. This infographic illustrates the employee benefits under DBA.

Second-injury claims (claims that occur when an existing or prior injury is re-injured) are often compensable under DBA and are typically very costly. In most cases, they’re also preventable.

To help reduce the risk of re-injury claims, contractors should consider taking a precautionary step by requiring all employees to undergo a pre-deployment health screening. Vendors can be hired to perform these “fit for duty” screenings which will help to identify any pre-existing illnesses or injuries and decipher whether or not deployment for work under contract to a volatile location, such as a war zone, will exacerbate the condition. Even if the work itself does not involve physical labor, other components of overseas employment such as the necessity to wear gear designed to protect employees living in a war zone―which can weigh 60 pounds or more― could, for example, cause an older person with a pre-existing back condition further injury.

The following two claim examples demonstrate how pre-deployment screenings could have changed employee work orders:

DBA Claim Example #1: As a 51 year old male was exiting a helicopter while working overseas, his foot got caught in a hole. He immediately felt pain in his lower back, which caused him to stumble and fall. He continued working after the injury, but later reported the incident in order to seek medical attention. After two lumbar fusion surgeries and physical therapy, the paid and reserve amount of the DBA claim was nearly $500,000. Had the employer requested pre-deployment screening, the employee’s age-related lower spine arthritis may have been detected, possibly rendering the employee as “not fit for duty.”

DBA Claim Example #2: A male employee in his late 40s was assigned to field service work in Afghanistan and was required to wear 65 pounds of war zone gear as part of the job. While working, he sneezed, causing great pain in his lower back. The man also reported a work-related shoulder injury a few days later. While investigating the claims, records from a military screening performed just prior to deployment indicated the man had been involved in a vehicle accident several years earlier that had required lumbar fusion surgery of the neck and back. Because of the weight of the gear and deterioration around the fusion area, the sneeze caused a herniated disc. This claim is currently reserved at $550,000. Had the employer requested a pre-deployment screening, the employee’s prior surgeries would have been disclosed, possibly rendering the employee as “not fit for duty.”

These claim examples reveal how second-injury claims can often be compensable under DBA, and can also result in large claim expenses. Claim payouts in the hundreds of thousands of dollars will adversely affect a contractor’s loss ratio and, in turn, result in increased DBA premiums. By ensuring all employees undergo a “fit for duty” screening, contractors can help reduce the number of second-injury claims and have a better handle on their overall claims management.

As the DBA Insurance broker for Allied World Assurance, the LATITUDE DBA Insurance team has a deep understanding of the complexities of Defense Base Act coverage, including claims management, and can assist contractors in creating an insurance plan that protects their business and its employees against overseas exposures. Contact LATITUDE DBA Insurance today!