 |
|
Defense
Base Act - Introduction
|
| As recent events painfully
illustrate, the security situation for U.S. and foreign contractors
(including local partners) undertaking work in Iraq has become an ever
more challenging and tenuous affair. Overall security costs are now estimated
at 20 to 25% of total operational costs in countries such as Iraq
and Afghanistan.
DBA is one of the most generous workers' compensation
programs and claims can take years to mature. For this reason,
factors such as service capabilities, claims processing and financial
strength are paramount. Thanks to our extensive experience in global
markets, and our first-class market contacts, Globex International can
help you secure not only competitive prices, but top-notch service you
can count on. > More
|
|
|
|
|
Unlike security costs in
general, DBA rates have steadily fallen since the onset of the
Iraq War and as reconstruction efforts have grown, primarily
due to an increased spread of risk for carriers, greater
claims experience in country, improvements in emergency
medical treatment and evacuation in country and in the region,
and the incurrence and passage of many one time infrastructure
costs.
For the past several months, the typical
going market rate ranges have fallen in the $10-$15 range for
standard classes. Even minimum premiums have fallen to
accommodate small businesses who are often performing work on
shorter-term contracts (e.g. 3-6 months versus a full year).
One carrier has further responded by writing
specific subcontractor programs for their insured large prime
contractors in order to
- Ease the minimum premium for their
individual small subcontractors
- Remove the liability of the prime to any
unknown exposures of an uninsured subcontractor for DBA
(who would not otherwise be covered by the prime's DBA
insurance policy), and
- Offer the small subs rates based off of
the large prime's competitive rates that likely reflect
the benefit of possessing multiple lines of coverage with
the insurance carrier, improved safety and loss
experience, etc.
Demand for additional cover such as Kidnap
Ransom and Extortion, Accidental
Death & Dismemberment insurance, 24
hour travel and medical assistance services, and high-limit key-person life insurance policies have also increased.
Contact Globex
for assistance in any of these areas.
|
