Understanding Insurance Policies

4 Things To Know About DBA Insurance

14 March 2022

Samantha Reynolds

If your company has recently won a government contract, then you might have been told to set up DBA insurance. If this is your first government partnership, then you might not know much about this coverage. Read on to learn the basics.

1. DBA Insurance Is A Legal Requirement

Certain government contracts tell you to set up DBA insurance. This isn't a recommendation. It is a condition of your contract, and you have a legal requirement to buy this coverage for any qualifying workers who will work overseas on your contracted jobs.

You also have to buy a policy from an approved insurance provider. If you don't meet these obligations, you could be subject to substantial penalty fines, the loss of your contract, and future lawsuits.

2. You Might Qualify For Some Waivers

While DBA insurance is a legal requirement, there are some circumstances when you can apply for waivers. A waiver allows you not to cover certain people or certain circumstances. For example, you might not have to supply this coverage for local nationals in some countries if you, or they, have a suitable insurance alternative.

3. DBA Insurance Doesn't Replace Workers' Comp

DBA insurance protects your employees and contractors in the same ways as your workers' comp coverage. However, workers' comp isn't a substitute for DBA insurance or vice versa.

Workers' comp only gives domestic coverage. If you'll send employees or contractors overseas as part of your government contract, then you usually need to provide DBA insurance for them. Workers' comp won't apply in these situations. In fact, you might need to provide both types of coverage for some people if they'll spend time working at home and overseas.

4. DBA Insurance Can Be Difficult To Cost

Like any insurance policy, DBA coverage is costed on a risk basis. If you've never used this coverage before, then you might find it hard to get the right insurance at a reasonable cost.

The costs of this insurance can be based on a lot of different risks and scenarios. For example, if you're sending out a contractor to work in an office role in a safe country, then their risk is relatively low. However, if you're sending people out to high-risk countries where they will work in the field, then their risks, and the cost of their coverage, will be higher.

To get the right coverage at an affordable cost, contact a DBA insurance broker. They can help you assess your contractual and worker circumstances to create the most effective coverage. They can then source policies from approved providers for you.

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