The Defense Base Act (DBA) was enacted in 1941 in preparation for World War II, in relationship to the Lend Lease Act with Britain. United States contractors were traveling overseas to work on military bases in Britain, and their domestic Workers’ Compensation Insurance was not designed to protect their employees while they worked outside the U.S. In response, the U.S. Congress passed the Defense Base Act as an extension to the U.S. Longshore and Harborworkers Act (which protects employees working on and around harbors and piers).

Over the years, the Defense Base Act has evolved. Where it once covered only workers on military bases, it now includes all government-funded contracts, including public works projects such as building schools, dams and roads outside of the U.S. DBA Insurance is mandated by federal law for all U.S. Government-funded contracts to cover persons employed and working outside the U.S., regardless of the type of services performed or the length of the contract.

Coverage provided under the Defense Base Act include Loss of Wages, Medical and Death benefits to covered employees who are injured or killed in the course of employment. Benefits of DBA Insurance are more robust than domestic Workers’ Compensation Insurance, with a higher weekly wage cap that increases annually to accommodate cost-of-living adjustments. If an employee is permanently disabled, DBA Insurance benefits continue until the individual is deceased.

Most DBA Insurance is purchased by the contractor via their insurance broker which is offered by several DBA Insurance carriers. As the DBA Insurance broker for Allied World Assurance, the LATITUDE team has a deep understanding of the complexities and unique business needs associated with government contracts and the Defense Base Act. Contact LATITUDE DBA Insurance today―we’d be happy to assist you in creating an insurance plan that protects your business and its employees against all your overseas exposures.

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