Coverage · Defense Base Act & Foreign Liability
Defense Base Act and foreign liability insurance for work overseas.
Defense Base Act (DBA)
The Defense Base Act requires U.S. government contractors and subcontractors to provide workers’ compensation coverage for employees working outside the United States on covered contracts, including work on U.S. military bases, public works projects with U.S. agencies and foreign assistance programs.
Coverage applies to all employees on a covered contract, including U.S. citizens, local nationals and third-country nationals, unless a waiver has been granted. Benefits include medical treatment, disability compensation and death benefits, and extend to injuries arising from war-related hazards. DBA coverage is mandatory. Contractors without it can be held directly liable for benefits and may face penalties.
Foreign liability
Domestic insurance policies provide limited protection for operations outside the United States. A foreign liability program addresses the exposures your business faces when operating or traveling abroad.
Coverage typically includes foreign general liability for third-party injury and property damage claims, foreign auto liability to supplement locally required coverage, and foreign voluntary workers’ compensation for employees abroad on work not covered by the Defense Base Act, including medical evacuation and repatriation. Kidnap and ransom, political risk and travel assistance can be added as needed.
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Defense Base Act & Foreign Liability
What it covers.
Where countries require locally issued insurance, a properly structured program coordinates those policies with your U.S. coverage to ensure compliance without gaps.
For firearms, tactical and defense businesses, government contracts and operations in sensitive regions make Defense Base Act and foreign liability coverage essential components of a complete program.
Typically covers
- Workers’ compensation for employees on covered contracts abroad
- U.S. citizens, local nationals and third-country nationals
- Injuries arising from war-related hazards
- Foreign general and auto liability
- Foreign voluntary workers’ comp, medical evacuation and repatriation
What we check
- Which contracts and employees fall under the Defense Base Act
- Waivers for local and third-country nationals
- Countries that require locally issued insurance
- Kidnap and ransom, political risk and travel assistance
By sector
How it applies to your sector.
Defense & Government Contractors
Required on covered contracts for work on bases, public works and foreign assistance programs.
Unmanned Systems & Counter-UAS
Field service, training and test crews deployed with systems abroad.
Communications & Space
Ground station, SATCOM and radio installation teams working overseas.
Defense Software & Cyber
Engineers and analysts supporting programs on site outside the United States.
FFL & Firearms
Foreign liability for export sales, trade shows and training abroad.
Common questions
Questions we hear about this coverage.
Don’t see yours? Call (970) 580-8067 and talk to the agency principal directly.
U.S. government contractors and subcontractors with employees working outside the United States on covered contracts, including work on military bases, public works projects with U.S. agencies and foreign assistance programs.
Yes. It applies to all employees on a covered contract, including U.S. citizens, local nationals and third-country nationals, unless a waiver has been granted.
DBA coverage is mandatory. Contractors without it can be held directly liable for benefits and may face penalties.
Only in a limited way. A foreign liability program covers third-party claims, auto and employees abroad, and coordinates with any locally required policies.