The Essential Facts You Need To Know About Defense Base Act Insurance

If your corporation operates overseas bases relating to United States military contracts or government operations, you may be researching Defense Base Act insurance, or DBA insurance, and wondering why you need this coverage. The Defense Base Act essentially requires certain overseas operations to provide benefits, so if you think your company may need this coverage, here are the essentials to keep in mind.

It Helps Provide Workers’ Comp To Overseas Employees on U.S. Military Bases

The primary function of DBA coverage is to help provide workers’ compensation and some other benefits to overseas U.S. military base employees and certain others. Categories that fall under the DA include:

  • Employees on reservations or U.S. military bases outside the United States
  • Sub-contractors working for such a base
  • Workers in overseas contracts relating to U.S. national security
  • Workers employed in public works businesses overseas that are funded by the U.S. government

Failure To Comply With the DBA Could Result in Serious Penalties

Should you fall under one of the above categories, DBA insurance may be necessary. Failure to comply could result in severe penalties such as:

  • Repayment of any eligible benefits, such as workers’ compensation
  • The possibility of a lawsuit and subsequent penalties or damages
  • Potential loss of contract and imposition of fines

If your operation requires Defense Base Act insurance and you don’t secure a policy, you may be liable for serious penalties. To avoid this, review these essential facts and find your DBA coverage.