As a business owner you might think “DBA” means “doing business as”; however in the context of working with the federal government, these three letters mean something different. DBA refers to defense base act coverage, a type of protection that you’re required to have for your employees if you do contract work with the United States government. Although the concept might sound similar to worker’s compensation or the type of insurance a government owner may require of a construction company, DBA coverage is a little different.
When Is DBA Coverage Required?
Defense base act insurance was originally conceived to cover workers on U.S. military bases outside of the country. Today, private companies with employees working on public sector jobs are required to have this insurance in place. Noncompliance comes with severe penalties, so it’s important to understand what is covered and when:
- Workers located on an international military base or reservation
- Anyone working on U.S. government-funded projects outside the country
- Employees or contractors involved in a public works or military agreement with a foreign entity, deemed essential to American national security
- Workers providing U.S. government-funded beyond the scope of typical military assignments
- Applicable subcontractors
Often DBA coverage is required irrespective of whether workers are U.S. citizens or not.
What Should I Know About Insurance Protection?
You don’t want to pay high fines or lose a government contract due to noncompliance. You owe it to your employees and your business to get DBA insurance as soon as possible. Find a provider who can help you come up with a plan.