In 1941, the Defense Base Act was passed to ensure that Workers’ Compensation coverage and benefits were afforded to employees traveling overseas under a U.S. Government contract to work on military bases and other public works and construction projects. Under the Act, contractors are required to purchase DBA Insurance coverage for all employees working overseas, regardless of the length of their employment.
Overseas travel is defined in the Act as that travel which occurs outside of the continental United States and U.S. territories and possessions. One exception is the U.S. Territory of Guam, where DBA Insurance is waived, and all work performed under a U.S. Government contract is subject to a local tariff-rated Workers’ Compensation system.
Coverage for Work in the U.S.
DBA Insurance coverage also applies to work performed in the Continental U.S. in some instances, and must be included as part of the written contract. For example, employees are eligible for DBA benefits while participating in pre-deployment training in the U.S. that is required in order to perform the overseas work. In such cases, coverage is afforded only while the training is in progress. If deployment to the overseas location takes place immediately following the training, DBA Insurance coverage continues without interruption. If there is a gap in time from when training ends and when the employees are deployed, DBA coverage ends at the conclusion of the training period and resumes upon deployment.
The LATITUDE DBA Insurance program understands the complexities and unique business needs associated with government contracts and the Defense Base Act. Contact the LATITUDE DBA Insurance program today to explore your DBA coverage options.