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DBA Insurance Market Will Grow

used by the United States for military purposes outside of the United States, including those in U.S. Territories and possessions;

  • work on any public work contracts with any U.S. government agency, including construction and service contracts, in connection with national defense or with war activities outside the United States;

  • work on any contracts approved and funded by the United States under the Foreign Assistance Act, which among other things provides for cash sale of military equipment, materials, and services to its allies if the contract is performed outside of the United States; and

  • work for any American employers providing welfare or similar services outside the United States for the benefit of the Armed Services, e.g., the United Services Organization (USO).

When any one of the above criteria is met, all employees engaged in such employment — regardless of nationality — are subject to the provi- sions of the DBA. Once again, this includes U.S. citizens and residents, host-country nationals (local hires), and even third-country nationals (individuals who may be hired from another country to work in the host country). An example of the latter would be a Kuwaiti national hired to perform engineering or other support duties within the Green Zone in Baghdad, Iraq.

Insurance requirements under the DBA are the same as those found within the USL&H Act. Specifically, every employer (including contractors and their subcontractors) must either secure insurance for the payment of DBAworkerscompensationbenefitsor certify thatthey are permissibly self- insured to a level sufficient to cover any claims that might occur. Further, if a subcontractor fails to secure adequate insurance for its employees or otherwise ensure the payment of compensation, the contractor will be liable and will ultimately be required to secure payment of adequate benefits.

Under DBA, if an employer fails to secure payment of compensation to workers who die, their survivors may sue the employer for damages. In such cases, the employer will not be allowed to use as a defense any argument that the injury or death was due to someone else’s negligence or that the injured or deceased employee was guilty of any contributory negligence. Furthermore, the failure to secure coverage can result in a misdemeanor charge against the employer, with the potential of fines and even jail sen- tences for corporate officers.

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