Why Travelers Trust Defense Base Act Insurance

Workers compensation for contractors is mandatory under the U.S. Defense Base Act (DBA) of 1941. This coverage applies to both U.S. workers and any foreign subcontractors who are not covered under their own country's workers compensation laws. The U.S. government requires that employees hired by contractors and subcontractors to work on international government contracts be protected by DBA coverage, regardless of their assignment and/or location.

Federal law requires all U.S. government contractors and subcontractors to secure workers' compensation insurance for their employees working overseas.

The Defense Base Act (DBA) covers the following employment activities:

• Working for private employers on U.S. military bases or on any lands used by the U.S. for military purposes outside of the United States, including those in U.S. territories and possessions;
• Working on public work contracts with any U.S. government agency, including construction and service contracts in connection with national defense or with war activities outside the United States;
• Working on contracts approved and funded by the U.S. under the Foreign Assistance Act, generally providing for cash sale of military equipment, materials, and services to its allies, if the contract is performed outside of the United States;
• Working for American employers providing welfare or similar services outside of the United States for the benefit of the Armed Forces, e.g. the USO.

If any one of the above criteria is met, all employees engaged in such employment, regardless of nationality, are covered under the Act.

Here are a few examples of typical rates we have seen for following labor categories. 
Rates listed are estimates only and are non-binding. Please submit an application to receive a quote/offer for DBA for coverage.

SERVICE: $3.50/$100 “White collar” workers such as Engineers, IT Consultants, and Administrative type office workers

CONSTRUCTION: $4.25/$100 “Blue collar” Carpentry, Electrical, Plumbing, Concrete, Asphalt, Day Laborers, Heavy Equipment Operation or Maintenance

SECURITY: $10.00 /$100 Personal Security Detail (PSD) and Static or Convoy Guarding Personnel or Property

AVIATION: $17.00/$100 Pilot and Crew of any aircraft