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ÌìÃÀÍøÕ¾´«Ã½´«Ã½ WorldSource(R), a division of the Domestic Brokerage Group of American International Group, has announced enhancements to several key components of its Defense Base Act (DBA) coverage program. ÌìÃÀÍøÕ¾´«Ã½´«Ã½ WorldSource will now provide DBA policies for sub-contractors in conjunction with a DBA policy for a primary contractor.

“If a sub-contractor fails to secure DBA coverage, then the liability on work-related injuries falls to the primary contractor, and that liability is not automatically covered under the primary contractor’s DBA policy,” observed ÌìÃÀÍøÕ¾´«Ã½´«Ã½ WorldSource President Gordon Knight. “Our sub-contractor enhancement is designed to eliminate this gap in coverage and make it easier for smaller sub-contractors to obtain DBA insurance without being subject to a minimum policy premium. While we underwrite primary and sub-contractor risks individually, the similarity in risk profile and type of work being conducted in DBA-mandated locations allows us to underwrite the primary and sub-contractor policies simultaneously.”

The announcement explained that such coverage is mandated by the Defense Base Act of 1941. “All primary and sub-contractors working in overseas locations on contracts funded by the United States government must secure workers compensation coverage known as DBA insurance. Up to this point, sub-contractors have generally had to secure their own DBA insurance independent of their primary contractor relationships.” The coverage extends to sub-contractors policies covering Kidnap & Ransom/Extortion and Accidental Death & Dismemberment.

“In addition to the sub-contractor enhancement, ÌìÃÀÍøÕ¾´«Ã½´«Ã½ WorldSource’s DBA program now includes Accidental Death and Dismemberment (AD&D) insurance, which provides 24-hour AD&D coverage, as well as travel and medical assistance services for covered employees,” the bulletin continued. ” The K&R coverage also includes certain costs associated with a kidnapping, such as ransom monies, consulting fees, legal costs and related expenses.

“ÌìÃÀÍøÕ¾´«Ã½´«Ã½ WorldSource is committed to offering comprehensive DBA coverage to contractors working in Iraq,” Knight continued . “No matter how volatile the environment, ÌìÃÀÍøÕ¾´«Ã½´«Ã½ WorldSource can help. We understand the local issues and have on-the-ground claims resources to help solve problems quickly and efficiently. No other carrier can match our regional infrastructure and commitment to the DBA market.”

For more information on ÌìÃÀÍøÕ¾´«Ã½´«Ã½ WorldSource’s DBA program, contact John Thompson, Assistant Vice President of Marketing, ÌìÃÀÍøÕ¾´«Ã½´«Ã½ WorldSource, at (212) 458-2123 or john.thompson@aig.com.

Topics ÌìÃÀÍøÕ¾´«Ã½´«Ã½ Contractors