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Black Fox International
Special Risk Insurance Brokers
1.800.877.2445 / 610.461.6690 / Fax 610.586.5467
[Defense Base Act Insurance]
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Defense Base Act Insurance Coverage
Are you bidding on a contract and need help to price the mandatory DEFENSE BASE ACT insurance coverage? Call now, or click here to contact us. We will gladly help you. 800-877-2445 / 610-461-6690.
Overview of Defense Base Act Insurance / DBA Insurance Coverage
One should note that Defense Base Act insurance coverage makes no reference to the nationality of covered employees: thus, local nationals or third country nationals are automatically covered under the DBA. Waivers can be granted, but they need to follow certain criteria, and only the Secretary of Labor is able to authorize any such waiver.
The courts rely on precedent when determining liability issues. Two doctrines known as the Zone of Special Danger and Reasonable Recreation are central to finding coverage under the Act. The Zone of Special Danger doctrine requires that an employee’s injury or death occurs arising out of or in te course of employment. In addition, the Zone of Danger states that where there exist unique conditions or circumstances of employment which place an employee in a zone of danger, then an accident resulting in injury or death need not be strictly related to job duties. The Reasonable Recreation doctrine requires that an employee’s injury or death occur arising out of or in the course of the employer’s furnished, funded or promoted recreational activities. Some non-sponsored activities may also be included. Please note that these two doctrines taken together do not lead to "24 Hour Coverage" for an employee.
Failure to obtain DBA insurance carries stiff penalties. All government contracts contain a provision that requires bidding contractors obtain necessary insurance. Failure to do so will result in fines and possible loss of contract. The additional and the most severe penalty is that the employers without DBA coverage are subject to suits under common law wherein common law defenses are waived. In others words, the claimants or their heirs need only file suit and do not have to prove negligence. Lastly, all claims may be brought in Federal Court and are against the insured directly.
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