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Defense
Base Act Coverage
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Established in 1941, the primary goal of the
Act was to cover workers on military bases outside the United
States. The Act was amended to include public works contracts
with the government for the building of non-military projects
such as dams, schools, harbors and roads abroad. A further
amendment added a vast array of enterprises revolving around
the national security of the U.S. and its allies.
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DBA does not just apply to military operations or
projects and does not apply only to American companies employing
U.S. citizens. Today, almost any contract with an agency of
the U.S. government for work outside the U.S., whether
military in nature or not, will likely require DBA insurance
coverage. This can even include the likes of:
- Universities and Higher Education programs
- a large number receive specific US government dollars
and contracts to perform research or work overseas.
- Pilots / Flight Crews - on US-government
contracted air carriers going overseas to transport things
such as military troops, dependents or cargo.
- European or Asian Contractors - working
on U.S. government contracts.
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Triggers for DBA
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There are five provisions in the
current version of the Defense Base Act that prompt
coverage:
- Any employee working on a
military base or reservation outside the U.S.
- Any employee engaged in U.S.
government funded public works business outside the
U.S.
- Any employee engaged in
public works or military contract with a foreign
government which has been deemed necessary to U.S.
National Security
- Those employees that provide
services funded by the U.S. government outside the realm
of regular military issue or channels
- Any employees of any
sub-contractors of the prime or letting contractor
involved in a contract like numbers 1 - 4 above
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Waivers
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One
should note that DBA 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.
Key points for gaining waivers
include:
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Class
of employee must have available alternate means of
compensation such as Employers Liability, Workers’
Compensation, or Social Security
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Waivers
can not be requested for any class of employee including
U.S. citizens or those employees hired inside the U.S.
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Agency
letting the contract must recommend that such a waiver be
granted • No waivers have
been granted for Iraq
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Contractor
must file an application with the U.S. Department of Labor
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Coverage Issues
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Below are some key points to keep in mind
regarding coverage situations.
The courts often 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 the course of employment. In addition,
the Zone of Danger states that where there exists 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
may not guarantee “24 Hour Coverage” for an employee.
Failure to obtain DBA insurance may carry
stiff penalties. Government contracts generally contain a
provision requiring bidding contractors to obtain necessary
insurance. Failure to do so may result in fines and possible
loss of contract. Employers without DBA coverage may be
subject to suits under common law wherein common law defenses
are waived. In other words, the claimants or their heirs
sometimes need only file suit and may not have to prove
negligence. Claims may be able to be brought in Federal Court
against the insured directly.
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How
to Request a DBA Quote |
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To request a quote, complete the
Defense Base Act Questionnaire found below, and return to
Globex as soon as possible.
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Click
here to download the Defense Base Act
Questionnaire |
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Disclaimer: This
document is not intended to and does not purport to provide
legal advice. You should consult your own lawyer for advice
regarding and for an explanation of which laws may or may not
apply to you, your business, or your personnel. You should not
rely on this as legal advice.
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