USACE DBA Insurance Background
Prior to the U.S. invading Iraq in 2004, there had never been a privatized war that had so many U.S. contractors working in a volatile war zone. As the war in Iraq was evolving and the U.S. was becoming more involved in the situation in Afghanistan, Underwriters were rating a diverse scope of services, ranging from land surveying for new construction of roads and buildings in Afghanistan, to private Security firms protecting those construction sites. As risk in these areas increased, DBA rates had become unaffordable for many contractors.
The United States Army Corp of Engineers (USACE) Defense Base Act (DBA) Program began in October 2005 as a six-month pilot program to lock in the DBA rates USACE contractors were being charged (similar to the Department of State and AID DBA programs) to allow contractors to comply with DBA laws and secure more affordable DBA coverage.
The pilot was deemed successful, and USACE decided to continue the program with CNA as the carrier. The program renewed for an additional two-year period in 2008 (and included the Joint Contracting Command for Iraq and Afghanistan (previously the Coalition Provisional Authority)), and renewed again in 2010.
Today, as the current USACE DBA contract period nears its expiration and work in Afghanistan is winding down, the United States Army Corp of Engineers has decided to discontinue the USACE DBA program and move it to the open market. The contract will officially expire on October 1, 2013.
How USACE DBA Changes Impact Contractors
If you are a contractor currently insured in the USACE DBA program with a renewal date of October 1, 2013 or after, you’ll be non-renewed by CNA and required to obtain coverage elsewhere. It is important you work with an insurance broker experienced in the DBA marketplace to secure DBA coverage in the open market. Be prepared to send an application for DBA coverage, loss or claim history from the previous carrier(s), and a Statement of Work from each contract in order to obtain your new coverage. Accounts will be underwritten, and your premium determined, based on factors such as services rendered under the contracts and claim history.
Be aware, coverage brokered on the open market is not afforded guaranteed rates or placement, so as a contractor you should be prepared to pay higher rates and be subjected to a minimum premium. Minimum premiums for work in Afghanistan and the Middle East are $9,000 or more annually.
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.