If your company has expanded into overseas work, you may be hiring contractors and others to head to foreign lands and grow the business. DBA insurance may be continually mentioned to you as you prepare to send workers away. How does that relate to you?
What is DBA?
The Defense Base Act was passed, in part, to address a gap in traditional insurance coverage for people who worked on various military bases. However, it was expanded just over a decade later through the separate 1954 Mutual Security Act, covering many types of civilians. Insurance related to this process is usually talked about as "DBA insurance," even if the workers aren't in the armed services.
DBA insurance is purchased by businesses to protect and provide insurance benefits for workers who contract an illness while overseas or become hurt. It's most like workers' compensation coverage domestically. In a departure from other workers' compensation, however, provisions are also in place in the event of kidnapping or other harm, which could come to someone due to local political or geographic issues.
What Positions Get DBA Coverage?
Many small companies and workers still remain unsure about whether this insurance would apply to them. Covered persons cover a range of professions, including military contractors, healthcare providers, administrative staff, science personnel, welders, and others. If your business is considering a list of people to send out of the country, check with DBA insurance providers first so you'll know about their coverage possibilities.
Are There Employer Requirements?
Generally, you must cover workers with DBA insurance if you're responsible for their relocation to another country. Without this insurance, you could be sued by workers who get hurt, but you could also face federal legal and financial problems, too. In rare cases, the Labor Department could release you of this obligation because your existing insurance will cover workers or the destination location will.
What Are Workers Told?
Assembling materials about this insurance is a smart way you can explain and clarify the basics. Because DBA insurance has some dissimilarities with traditional workers' comp insurance, help people understand what they must do if they do become injured or ill while overseas. This enables them to feel safer and can help everyone avoid problems later.
Seeking out and getting DBA insurance for overseas workers provides incentives that encourage your best people to perform in different countries. Speaking with those who specialize in the Defense Base Act can ensure multiple layers of insurance protection for your employees.
