Insurance Investigation: What Does DBA Mean in Insurance?

Insurance Investigation: What Does DBA Mean in Insurance?

Jan 29, 2021 | Defense Base Act

The Defense Base Act (DBA) guarantees the benefits of workers’ compensation to civilian contractors and subcontractors working overseas for the U.S. military. 

What does DBA mean?

DBA covers nearly any contract with a U.S. government agency for work performed outside of the country and guarantees protections similar to workmen’s. Certain guidelines apply.

Who Does DBA Cover?

DBA is a law enacted in 1941 that initially covered military contractors – any civilian employee working for the U.S. military or U.S. embassies.

If you are a civilian working abroad in any capacity for the U.S. military, DBA guarantees benefits in the case of injury, illness, or death.

Since its initial enactment, DBA has been extended to cover public works employees. If you work on an infrastructure project funded by any U.S. government agency, learn more about what DBA offers you.

Similarly, if you are working on any project outside the U.S. associated with the Foreign Assistance Act – in other words, a project funded by United States Agency for International Development (USAID) – DBA covers you. 

USAID is a government agency established in 1961 that provides non-military, economic assistance programs. Often, USAID funds charities to complete projects such as building schools or hospitals abroad. DBA extends to cover any employee of such a project, including local staff. 

Finally, DBA extends to companies providing support and welfare for the U.S. military abroad. For example, if you are an employee delivering holiday care packages under a United Service Organization (USO) contract, DBA covers you.

Generally, DBA guarantees coverage similar to workers’ compensation employees of U.S. agency contracts working abroad.

This coverage applies whether the employee is a United States citizen or not.

What does DBA Mean?

DBA means that employees who work on military contracts are guaranteed disability benefits for illnesses such as Post Traumatic Stress Disorder (PTSD).

In the case of total disability, DBA guarantees an employee two-thirds of their average weekly salary up to $1030.78. In the case of permanent disability, this coverage extends for life.

In the case of injury or illness, DBA also guarantees that employees receive medical treatment from a provider of their choice.

In the case of death, a surviving spouse is entitled to half of the employee’s average weekly salary. If the employee has more than one survivor, such as a spouse and child, DBA guarantees two-thirds of the employee’s average weekly salary.

Employees who are not U.S. citizens are entitled to 50 percent of the current value of their expected future income. This is generally provided as a lump sum payment. 

How to Claim DBA Benefits

What does DBA mean? Contact a specialist DBA attorney now to learn more.

Claiming your DBA coverage is best handled by lawyers dedicated to employees who have worked abroad on U.S. agency contracts. If you are injured or ill while working for a U.S. agency contract or subcontractor, claim your DBA coverage now.