Clements Worldwide Cautions Contractors About Latest Changes to DBA Insurance

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The program’s most recent modification impacts the way in which U.S. Army Corps of Engineers personnel obtain critical DBA insurance.

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Clements Worldwide, leading provider of international insurance solutions, reports that effective today, the U.S. Army Corps of Engineers’ (USACE) pre-negotiated agreement with insurer CNA for the provision of Defense Base Act (DBA) coverage will expire. As a result, all USACE DBA policies with renewal dates on or after October 1, 2013 must be placed on an open market basis.

Consequently, contractors may be subject to:

  • Higher rates:

-Minimum premiums now apply, which could be significantly more expensive for contractors with operations in Iraq or Afghanistan.

  • More complex procurement:

-Brokers must now present risk in order to obtain quotes.
-Insurers will now require claims experience information in order to rate individual accounts.

  • Varying limits:

-Although basic coverage will remain the same, certain extensions (such as evacuation) may have varying limits depending on the insurer.

Consisting of nearly 40,000 civilian and military personnel, the USACE -- as well as all U.S. government contractors -- are still required to obtain commercially available DBA insurance through a Department of Labor (DOL) approved insurance carrier.

“Failure to obtain DBA insurance for all covered employees not only subjects an organization to the risk of potential lawsuits by its employees, it also exposes the company and its officers individually to possible Labor Department fines and criminal actions,” says Smita Malik, assistant vice president at Clements. “DBA cover is therefore not only an important requirement of any robust compliance program, but also an important step in mitigating potential liability arising from covered employee activities.”

Clements urges all U .S. government contractors and subcontractors to promptly consult with an authorized DBA insurance expert to ensure proper compliance with the USACE’s new requirements. Additionally, Clements will host an educational roundtable discussion on DBA coverage at the offices of ISOA in Washington D.C. on October 1st. To learn more or to register for the event, visit


About Clements Worldwide
Clements Worldwide works with authorized DBA insurance carriers, and is a leading insurance provider of insurance solutions for expatriates and international organizations. Founded in 1947, Clements offers international car, property, term life, health, specialty and high risk insurance in over 170 countries. With offices in Washington, D.C., London, and Dubai, Clements delivers comprehensive coverage, superior customer service, and unparalleled claims response. To learn more and quote online, please visit

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