Ask Regina

Q. We have an insured that will be sending employees overseas to work on a military reginabase and the base is requiring Defense Base Act Insurance. What is it and how do we provide the coverage?

A. Defense Base Act insurance, as defined in the International Risk Management Institute Glossary, was legislation that extends the Longshore and Harbor Workers’ Compensation Act (LHWCA) to apply to certain categories of employees working overseas.

The three general divisions of covered employees are (1) those working on military bases acquired from a foreign government after 1940, (2) employees of civilian contractors and subcontractors engaged in public work projects for the U.S. government outside the continental United States, and (3) individuals employed outside the continental United States by a U.S. employer whose purpose it is to provide welfare or other such services to the Armed Forces as approved by the secretary of defense.

There is a workers compensation endorsement to provide this coverage: WC 00 01 01

Defense Base Act Coverage
The federal Defense Base Act provides for benefits under the Longshore and Harbor workers Compensation Act (LHWCA) and is applicable to employees of contractors performing work at overseas military bases, whether in a territory or possession of the U.S. or in a foreign country, and to various public works contracts performed outside the continental U.S. This endorsement extends the workers compensation policy to provide LHWCA coverage when the named insured is performing such work.

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