Defense Base Act Insurance

If your business has a contract for work overseas that is approved or financed by the U.S. government, Defense Base Act insurance may be required. DBA coverage is a specialized form of workers’ compensation designed to protect employees working outside the United States under qualifying government-related contracts.

This coverage helps employers meet federal requirements while providing important benefits for workers who may face injury, illness, disability, or loss of income while on assignment abroad.

What Is Defense Base Act Coverage?

Defense Base Act insurance extends workers’ compensation protection to employees working overseas on certain U.S. government contracts. It is commonly required for contractors and subcontractors involved in military, public works, logistical, educational, and support-related operations outside the continental United States.

Because these projects often involve unique risks and international exposures, DBA coverage is built to respond to the needs of both employers and employees operating in complex environments.

Coverage Highlights

Defense Base Act insurance can provide coverage for a range of employee needs, including:

• Medical expenses
• Rehabilitation services
• Temporary and permanent disability benefits
• Indemnity for lost wages or income
• Death benefits

Optional coverages may also be available, such as:

• Kidnap and extortion coverage
• Accidental death and dismemberment coverage

Some programs may also include access to risk management service options to help employers better manage overseas exposures.

Program Advantages

A strong Defense Base Act program can offer more than basic compliance. Key advantages may include access to:

• Department of Labor-approved DBA insurance providers
• Experienced underwriters with knowledge of DBA and international casualty
• Dedicated claims teams familiar with DBA and Longshore claims
• Worldwide employee assistance within 24 hours of a reported claim
• Global underwriting and claims support across more than 200 countries

These resources can be especially valuable for employers managing projects in remote or high-risk locations.

Who May Need Defense Base Act Insurance?

Defense Base Act insurance may apply to U.S.-based businesses with federal government contracts for overseas work. Industries and employee roles that may need this coverage include:

• Engineers
• Project managers
• Consultants
• Facilities support management services
• Logistical support services
• Information technology providers
• Educational institutions

If employees are traveling abroad to perform services tied to a qualifying government contract, DBA coverage may be necessary.

Covered Contracts

The Defense Base Act can apply to contracts involving work performed outside the continental United States in a variety of situations, including:

• Work at military, air, or naval bases
• Work on land occupied or used by the U.S. government for military purposes
• Public works projects in U.S. territories or possessions under contract with the U.S. government
• Public works contracts performed outside the United States
• Contracts approved and financed by the U.S. government or a federal agency under the Mutual Security Act of 1954
• Welfare or similar services provided outside the continental U.S. for the benefit of the Armed Forces, when properly authorized

In many cases, coverage must be secured before work begins and maintained throughout the life of the contract.

Coverage Limits

Available limits may include:

• Employers Liability up to $1 million for DBA coverage
• Up to $1 million for repatriation

Coverage availability and limits can vary based on the nature of the contract, the locations involved, and the employer’s operations.

Why DBA Coverage Matters

Defense Base Act insurance helps businesses stay compliant with federal requirements while protecting employees working far from home. Overseas government-related projects can involve complex responsibilities, and having the right coverage in place can help support both your workforce and your operation when unexpected events occur.

Whether your business provides engineering, consulting, logistics, education, or support services overseas, DBA coverage can play an important role in your overall risk strategy.

Get Help With Defense Base Act Coverage

If your business is preparing for an overseas government contract, it is important to review your Defense Base Act insurance requirements before work begins. The right policy can help you stay compliant, protect your employees, and move forward with greater confidence.