Do You Need DBA Insurance?
Contract workers fill an important niche when it comes to national security. Many government agencies rely on contract workers to help them accomplish vital tasks. These contract workers must have access to workers' compensation insurance coverage at all times to provide them with financial help in the event of injury.
The specialized workers' compensation insurance policies carried by contract companies are often referred to as DBA (Defense Base Act) insurance. Read on to learn if your company needs to have a valid DBA insurance policy in place to protect both you and your employees.
Employment of Contractors
The first stipulation you must consider is whether or not you have employees who operate under government contract through your company. Contract workers are all entitled to receive DBA insurance, so you will be expected to provide coverage if you want to maintain government contracts.
This requirement is fairly simple to evaluate; you either have contract workers on your payroll or you do not.
Location of Contractors
Once you have determined that you do have government contract employees on your payroll, you need to determine if immediate DBA coverage is required for these individuals. This is based largely upon the location in which contract employees are working.
If your workforce fulfills government contracts within the confines of the United States, then traditional workers' compensation insurance will cover any damages associated with workplace injuries. If you need to send your contractors overseas to assist with government activities, then you will need to obtain a valid DBA policy before deploying your employees.
You can easily use employee location as a guide to determine whether or not you need a DBA insurance policy in place.
The only exception to the DBA insurance coverage requirement for government contractors deployed abroad is a special waiver issued by the Department of Labor.
Companies that deploy employees to host countries who already have adequate workers' compensation coverage in place may be exempt from DBA insurance requirements in the United States. The host country must not require any additional insurance coverage in order for your company to qualify for a Department of Labor waiver.
Understanding DBA insurance and the important role it plays in today's economy will help you be better prepared to bid for and fulfill government contracts in the future. Talk to your insurance agent about DBA policy options so that you will be prepared to take immediate action to secure DBA coverage if the need arises.