Things You Should Know About The Defense Base Act (DBA) Insurance

All government contractors are heavily protected when working at U.S. facilities. Yet, for companies that work on government projects overseas, a completely different set of laws apply. 

Although many legal requirements apply to government contracts working outside U.S. borders, today we will primarily focus on the Defense Base Act (DBA) insurance. 

Stay with us and learn a bit more about this act and when is Defense Base Act Coverage required. 

What is the Defense Base Act?

The Defense Base Act is a federal law that provides civilian employees working in American military bases outside the U.S. territory with workers’ compensation. DBA also covers civilians working under contracts with the government on projects regarding national defense or public works.

Public work here refers to making any construction projects or fixed improvements made for public use of the United States or its allies. Furthermore, this also includes operations and contracts regarding national defense. 



When is Defense Base Act coverage required?

When it comes to insurance coverage under DBA, it applies to all individuals employed on military bases or lands used by the U.S. for military purposes overseas. In addition, the act also covers contractors under U.S. funding and applies to workers that provide services such as welfare to the armed forces, regardless of whether they are paid by another contractor or receive direct payments from an employer. 

This is because the majority of the Longshore and Harbor Workers’ Compensation Act requirements are written into the DBA. Similarly, DBA also has strict insurance requirements - every employer must get insurance or self-insure to be able to provide workers’ comp benefits to their employees. 

To continue on the topic of when is Defense Base Act coverage required, it’s worth noting that no personnel working under a U.S. contract are exempt from it. This includes American citizens, as well as personnel hired in the States whatever their citizenship status is. Furthermore, DBA is also required for host-country nationals and third-country nationals.

Coverage is also required for all instances of disability, injury, or death for individuals under contract with the U.S. or any department or agency.

How employers can receive DBA waivers

DBA also safeguards government contractors from state workers’ comp laws. This applies to American and foreign companies. Additionally, DBA offers employers protection from liability in case of federal tort claims.

To receive DBA waivers, it’s necessary to file a form with the Department of Labor. If the waiver gets approved, the contracting officer will sign the form and pass it on to the Department of Labor, which then forwards it to the Office of Workers Compensation Program.

Upon approval, the employer is required to send a notice to each employee affected by this change in status. These employees consequently must sign a release in which they waive their rights to pursue any claims against the employer under state or federal law. In other words, if the employees get hurt on the job, they can only pursue compensation through DBA, rather than filing a personal injury suit to recover damages.

Defense Base Act Benefits

Under the DBA, all employees are eligible for disability benefits if their injury occurs during employment, regardless of whether or not their injury occurred during working hours. These benefits include payments for both temporary and permanent total disability and death.

The total disability amount is two-thirds of the average monthly wage with an upper limit of approximately $1.8k per month. With a partial loss of earnings, employees are eligible for a 50% benefit that is based on the difference between post-injury and pre-injury wages. This only covers the period of disability.

When it comes to death benefits, they amount to half of the deceased individual’s average monthly wage, with the addition of two-thirds of the average monthly salary of their dependents. The current upper limit is approximately $2.9k per month.

If the deceased individual was married, the surviving spouse will generally receive twice the amount of the deceased person’s average monthly wage. 

There is no minimum rate under DBA, rather, all rates are annually adjusted for inflation. 

Reporting procedures for DBA

If an employee suffers an injury while under a contract, their medical costs will be covered by the employer if the employer is willing to fund medical care. In cases in which they fail to do so, the Secretary of the DBA program will cover medical bills. 

All employers are required to report any on-the-job injuries or instances of death within ten days of discovery of the event. The report must include details such as medical information, how the injury occurred, and the amount of compensation the worker is eligible for under DBA. All injuries need to be reported as soon as it’s feasible, and failure to do so could lead to hefty government penalties for the company. 

When filing a claim, an injured individual must file a written notification to the district director that governs their place of work within 30 days of the accident, along with proof that the accident occurred. This is common for injuries that don’t have an instant onset of symptoms. 

Once the director receives the necessary documentation, they’ll determine whether the claimant is eligible to receive Defense Base Act Benefits. If the decision is positive, they will issue a compensation order and provide a copy to the claimant.

If the director decides the claimant isn’t eligible, the claimant has the right to appeal within 30 days of the decision. The deputy commissioner will accept any additional evidence, after which they have the right to uphold, modify, or reverse the decision. If anyone disagrees with the new decision, they can appeal again and the commissioner will be required to rehear the case. 

Pursue a claim with an attorney from RITE

In some cases, you may not be able to file a claim right away. This is particularly common with conditions that have a late onset of symptoms, such as mental health conditions and cancer.

If you think that an on-site event led to your injury but you’re unsure whether it’s worth pursuing a claim under the Defense Base Act, you need an attorney. 

Contact the Law Offices of RITE as soon as possible, and you’ll receive a team of experts who have helped many individuals receive favorable Defense Base Act settlements. In fact, one of our main areas of specialty is the Defense Base Act, so by signing up with us, you get to collaborate with the only bonafide DBA experts in North Florida.

Call (904) 500-RITE (7483), or send an email to info@rite4justice.com now!

Note: 

The information in this blog post is for reference only and not legal advice. As such, you should not make legal decisions based on the information in this blog post. Moreover, there is no lawyer-client relationship resulting from this blog post, nor should any such relationship be implied. If you need legal counsel, please consult a lawyer licensed to practice in your jurisdiction.