As an overseas contractor, the Defense Base Act (DBA) provides you essential benefits if you suffer an injury while on the job. DBA coverage is mandatory for all U.S. government contractors and subcontractors working outside the U.S. It provides you and your family with critical financial and medical safeguards, and you can discuss your rights to workers’ compensation with a DBA attorney.

Medical Care

If you sustain an injury or illness while working overseas, DBA insurance will cover all the necessary costs for medical treatment. This includes hospital stays, surgeries, physical therapy, medications, and travel expenses.

Disability and Lost Wage Benefits

DBA also provides wage replacement benefits if your injury prevents you from working. You will receive a portion of your average weekly wages – up to a stated maximum per week. Disability benefits continue as long as your disability persists, even for life. Your spouse and children may also receive benefits if you die from a work-related injury or illness.

Vocational Rehabilitation

If your disability prevents you from returning to your usual job, DBA insurance covers retraining programs to help you find suitable alternative employment. This includes the cost of education, training, job placement, and job search expenses.

Death Benefits

If a work-related injury or illness results in your death, DBA provides survivor benefits for your spouse and dependent children. Your spouse receives a certain amount of your average weekly wages until remarriage, and your children receive a percentage of wages until age 18 (or age 23 if a child is a full-time student). Burial expenses up to a specified amount are also covered.

How Employers Calculate Benefits

A DBA insurance company calculates an employer’s total payroll and plugs it into a predetermined rate. Typically, that rate spans between $3.50 to $4.50 per $100 in earnings. So, basically, an employer takes the total payroll amount and divides it by 100, then multiplies the answer by the rate the insurance company sets.

DBA Premiums for Employers 

DBA insurers consider the type of contractual work performed as well as the location when calculating premiums. For example, an employer will pay more in premiums for contractors who work in a zone of special danger versus an employee, for instance, who works at a European embassy. 

How DBA Claims Work

Once a worker files a claim for benefits under the DBA, the process for determining eligibility and compensation begins. The steps in the claims process include the following:

Report the Injury to Your Employer Right Away

To start things off, you should notify your supervisor as soon as possible after you get injured or you discover you’re sick. 

Written notice of your injury should be made to your employer via Form LS-201 within 30 days’ time. Added time is provided for claimants with hearing loss injuries or occupational disease claims.

Receive Medical Care

Obtain medical attention, if required, immediately. You can choose a physician of your choice for treatment or therapy.

Ask your employer for a Form LS-1 (Request for Exam/Treatment). If the injury is an emergency, you can forego this step and request authorization from your employer or their insurance carrier after you obtain treatment.

The DOL requires a medical examination to evaluate the extent of the injury or illness. The doctor assesses the worker’s condition, prognosis, and any need for treatment. Their medical report helps determine the appropriate benefits and compensation.

Obtain Compensation for a Work-Related Disability

If a work-related injury causes you to become disabled for more than three days, you should receive a payment 14 days from the date your employer knew about your loss in wages. However, the payment is not overdue until 14 days after that date. The insurance carrier, therefore, has 28 days to issue the first disability payment. Payments after that time are issued bi-weekly.

Determining the Payout

Based on the medical report and other details of the claim, the DOL calculates the benefits or money the worker will receive. This includes compensation for lost wages, medical care, and any impairment or disfigurement. Benefits continue for the duration of disability or medical care.

Compensation benefits are two-thirds of the average weekly wage (AWW) for an employee, up to the maximum current rate.

Appealing a Claim Denial

If a claim is denied at any point in the process, the worker has the right to appeal the decision. They can submit additional evidence to support their claim and request a re-investigation of the details. Appeals may go through multiple levels before a final determination is made.

DBA Coverage for Different Job Types

As an overseas contract worker, having Defense Base Act (DBA) coverage is legally mandatory. Below are some of the main jobs covered by the DBA.

Security Contractors

If you work as an armed security contractor, your job puts you in dangerous situations. Therefore, you need DBA insurance for medical care, lost wages, and disability or death benefits in case of a work-related accident or injury. The high-risk nature of security contracting means DBA insurance is a crucial benefit.

Construction Workers

As a construction worker on a U.S. military base abroad, DBA is essential. Construction sites are hazardous, and workers risk injuries from heavy equipment malfunctions, falls, and other accidents. Comprehensive DBA provides medical coverage and lost wage replacement so an employee can recover without going into debt or losing their livelihood.

Translators and Office Staff

Even if you have a low-risk job, such as an office worker, translator, or in another administrative role, basic DBA coverage is still important. While the chances of a major injury are small, you could still face health issues from illness, natural disasters, or a repetitive motion injury. Basic DBA covers essential medical care and a portion of lost wages in these situations.

Teachers and Trainers

As an educator overseas, you play an important role, but you still need DBA coverage for medical care, lost pay, and disability benefits, which will give you security and stability. While schools and training centers follow regular safety standards, accidents, and health issues can still happen unexpectedly.

Call a DBA Lawyer for a Consultation Now

Are you an employee about to work overseas? If so, it’s always a good idea to consult with a DBA lawyer. Contact Mara Law to schedule an appointment now about your worker’s compensation.