DBA Insurance protects you and your employees in the case of an injury, illness or disability while working outside of the United States.
Aside from the fact that it is a mandatory insurance for military contractors and government agencies, you might not know much about the defense base act insurance policy and coverage.
When you decide to buy a DBA policy for your employees, there are certain things you should know to make for a smooth application process, avoid costly mistakes and get the best coverage for your employees and company.
Previously, we covered a guide on DBA insurance.In this article, we will discuss some tips that will make your Defense Base Act insurance application process easier.
1. Work with Experienced Professionals
There are a lot of DBA insurance agents out there, but you should work with a licensed and experienced broker who is also familiar with the government contracting process. With an experienced broker, you will get the best policy advice for the contract at hand. You will also get the most competitive rates for this coverage.
An experienced broker can also guide you through the common pitfalls associated with Defense Base Act insurance and make the best recommendations for your specific case.
If you employ the services of inexperienced agent, it will likely cost you money, resources, and time.
2. Update Your Carriers About Changes
Inform your carrier about any changes to your contract. This includes changes to your contract operations, deployment periods and payrolls. In some cases, you will need to complete another application for an additional contract. This will help prevent misunderstandings about your operations.
3. The Coverage is Limited
Yes. The DBA policy does not cover everything. It protects your employees in case of accidents, disabilities and illness that are related to a specific contract. However, it is not 24-hour protection for every injury or illness that your employee may have. If an employee falls sick or get kidnapped while on a different assignment or on vacation, the policy may not cover them. Also, property damage or loss while working in a foreign country may not be covered. It is therefore advisable to consider securing additional insurance such as property, and worldwide medical coverage that your employee may need based on the destination country. Your employee will enjoy additional benefits and better protection with expanded coverage.
4. Discuss Subcontractors Coverage
Another important tip is to inform your carrier in advance about the subcontractors you will work with and whether they can be covered. Don’t assume that your subcontractors will be automatically accepted by your insurance provider. Prior agreement with your carrier will prevent disagreement, and unplanned costs associated with contract changes.
5. Use the Right Contract Duration
Your DBA insurance application relies on the contract duration. A contract extension may not be covered by the first policy. In some instances, a carrier may offer a monthly, quarterly or annual contract. When you know the contract period, you can purchase the right policy to cover your employees.
6. Get Quotes Before Bidding
It is best to get the policy pricing for a contract while you are preparing a proposal and not after. Knowing the pricing before proposal submission will help you bid better and avoid contract award margin surprises. It is easy to get a quick DBA quote. You just need to complete and submit an online form about your contract and employees.
7. Review Emergency Plans
You should have a plan for emergency evacuation of personnel for medical or other reasons. This information may be requested by the insurance carrier to evaluate your DBA application. In hostile territories, you should be prepared to describe security measures in place for any employees who commute to work.
8. Provide Payroll Data
You must provide a reasonable estimate of employee payroll. The only payroll you should include on the application for Defense Base Act insurance is the amount associated with the contract work.
9. Provide Accurate Information
When completing your Defense Base Act insurance application, it is essential that you accurately represent your contract and employees. Your insurance carrier works with the information you provide and can only get you the right policy with correct data. Information such as description of operations, numbers of workers by nationality, payrolls housing, security and transportation are needed.
10. Disclose Contract Risks
Your contract may have specific risks not found in typical projects that can affect your employees or their ability to work. These risks must be clearly stated while applying for the Defense Base Act insurance.
To avoid any potential adverse consequences, apply for your Defense Base Act insurance now!
DBA insurance is mandatory for contract work outside of the US. The tips above will help you as a military or government contractor to get the best advice and policy for your employees. Need DBA coverage for your employees?
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