Bellwood Prestbury comment on recent changes to Defense Base Act (DBA) Insurance
22 October 2013
Following recent changes to the US Army Corps of Engineers (USACE) DBA insurance program, Bellwood Prestbury are recommending that US government contractors and subcontractors consult with a DBA insurance expert to make certain they have a full understanding of USACE’s new requirements. The previous USACE program (a pre-negotiated agreement with insurer CNA for the provision of Defense Base Act coverage) ended on 30th September 2013, and as a result any new contracts with the Army Corps awarded on or after October 1st 2013 will have to be placed on the open market for DBA coverage quotes.
Consequently, contractors may face increased insurance premiums and a more complex procurement and compliance process as insurers will need to fully evaluate risk by analysing claims history and experience.
Bellwood Prestbury are expert at providing international insurance for companies operating in war zones and high-risk areas, and work with authorised DBA insurance providers to arrange Defense Base Act insurance for many workforces operating outside of the US.
What is Defense Base Act Insurance?
Defense Base Act insurance or DBA insurance is a legal requirement for anyone working on US military or public works outside of the US. If you operate a contract with the US military or are involved with civil or humanitarian contracts with US Government departments outside the US, you are legally obliged to cover your workers with DBA insurance. Failure to do so can lead to loss of contracts and leave you open to legal action in the US Federal courts. If an employee or contractor were injured or killed without DBA insurance in place, your organisation would be directly liable for large compensation costs.
To find out more about international DBA insurance that Bellwood Prestbury can provide, please call +44 (0) 1242 584 558 or contact us today.