Employees who are stationed overseas aren`t always afforded the same injury protection as those workers who are based domestically. The insurance situation becomes more complex when you consider individuals and companies contracted to work for the United States government. When working with the Department of Defense, the U.S. Army Corps of Engineers, or Department of State, you are required by United States law to carry Defense Base Act insurance for employees who will be working internationally.
The Costs of DBA Coverage
When thinking about the cost of DBA insurance, there is more at stake than just the expense of the premiums. The financial chaos that can result in an employee who is injured overseas could cripple your company. In response to the growing need for medical coverage similar to a domestic workers comp plan, the federal government requires its contractors to carry DBA coverage.
Premiums can range from $5,000 a year to greater than $10,000, depending on several factors. These include:
- Total annual payroll costs for employees working overseas
- Geographical location of employees
- Employee certifications or qualifications
- Affiliation with a military base for work performed
- Prior DBA insurance claims or losses
- Transportation or travel needs for employees working overseas
Though DBA coverage is similar to a workers comp plan, it is only effective when the employee is injured while stationed internationally. You will still need to carry a worker comp policy when the employee has returned to the United States.