Defense Base Act Insurance: Frequently Asked Questions
A complete guide for government contractors working overseas
Coverage basics
What is Defense Base Act insurance?
The Defense Base Act (DBA) is a federal law that requires U.S. government contractors and subcontractors to carry workers’ compensation coverage for civilian employees working outside the United States. It applies to public works contracts, contracts financed under the Foreign Assistance Act, and contracts connected to national defense or war activities performed overseas. If your company sends people OCONUS to do work on a qualifying U.S. government contract, DBA coverage isn’t optional, it’s the law.
Does my regular workers’ compensation policy cover this?
No. State workers’ compensation policies are built for domestic work and generally don’t extend coverage overseas. DBA is a distinct federal requirement, administered separately from state programs, and it’s the only coverage that satisfies the legal obligation for qualifying OCONUS contract work.
What industries does DBA apply to?
DBA isn’t limited to defense contractors in the literal sense. It covers civilian employees across a wide range of sectors doing qualifying overseas government contract work, including construction, logistics, technology, security, research, and consulting. If your contract and your employees’ work meet the criteria, the industry label on your company doesn’t change the requirement.
Does DBA cover foreign national employees, or only U.S. citizens?
Coverage can extend to foreign nationals hired to work on a covered contract, though the specifics can depend on the worker’s nationality, where they’re hired, and any local labor agreements in place. This is one area where it’s worth reviewing your specific contract and workforce with a broker rather than assuming either way.
Subcontractors and compliance
Do subcontractors need their own DBA coverage?
Yes. If you are not covered under the Prime Contractor, every subcontractor working OCONUS on a covered U.S. government contract is required to secure its own DBA insurance for its own employees. Coverage doesn’t flow down automatically from the prime contractor’s policy; each tier of the contract needs its own compliant coverage in place.
What happens if a company doesn’t carry DBA coverage?
The consequences go beyond a missed line item. Employers without proper DBA coverage can face criminal prosecution and fines, and in some cases, corporate officers, including the president, secretary, and treasurer, can be held personally liable. Beyond the legal exposure, many contracting officers require proof of DBA compliance before work can begin, so missing coverage can delay or cost you the contract itself.
Is DBA compliance checked before a contract is awarded?
Often, yes. Proof of compliant DBA insurance is frequently required as part of the award or mobilization process. If you’re bidding on a new contract or renewing existing overseas work, it’s worth confirming your coverage is in place early, rather than discovering a gap once the award is on the line.
Claims and the filing process
What should happen if an employee is injured overseas?
The employer, or the claims administrator if the company is self-insured, needs to be notified right away, and medical treatment should be authorized immediately. Acting quickly on both fronts is what keeps an injury from turning into a bigger compliance or liability problem.
What paperwork is required after an injury?
An Employer’s First Report of Injury (Form LS-202) must be filed with the Office of Workers’ Compensation Programs (OWCP) district office within 10 days if the injury causes any lost work time. Missing that window can complicate the claims process, so it’s worth having the form and the process mapped out before an injury happens, not after.
What does DBA coverage actually pay for?
DBA benefits generally mirror the Longshore and Harbor Workers’ Compensation Act, medical treatment, disability payments, and death benefits for qualifying injuries or illnesses connected to covered overseas work. The specifics of a claim depend on the nature of the injury and the policy in place, which is part of why having the right coverage, not just any coverage, matters.
Getting covered
How long does it take to get a DBA quote?
In most cases, an accurate DBA quote can be turned around quickly, often the same day, so it doesn’t have to slow down a bid or a contract start date.
When should I start the process of securing coverage?
As early as possible, ideally as soon as a contract is in the bidding or renewal stage. Coverage and compliance gaps are far easier to prevent early than to fix once a contract is already underway or an injury has occurred.
Have a question that isn’t answered here?
Reach out directly, our team is happy to walk through your specific contract, workforce, and coverage needs.
This page is for general informational purposes and doesn’t constitute legal advice. Contact Global Underwriters to review your organization’s specific DBA compliance obligations.
