DBA Policies Are Important When Bidding For Overseas Construction Projects
A growing number of construction businesses are looking to overseas building projects for huge financial success. However, many of these jobs are in war zones, meaning that Defense Base Act or DBA insurance is a wise investment.
Project Size And Complexity Dictate Your DBA Premiums
Working overseas near an American defense base is often a dangerous experience for your employees. Thankfully, your Defense Base Act Insurance premiums are going to be a lot smaller than you would anticipate. For example, the model for pricing a policy is often based on the size of a project, how long it will last, and the danger level of the area in which the project is being undertaken.
For example, smaller jobs may get about $10,000 worth of insurance coverage because it will only last a month and employs only 20-30 people. Premiums will range anywhere from $5,000 to $25,000, which is an important consideration to take into account when creating a bid for a job. Talk to your provider to get a feel for what to expect from your payment.
Beyond that, this extra cost is also important to consider when deciding on employee reimbursement. For example, an overseas contractor may pay $30-50 per hour per employee due to the level of danger inherent in the job. However, paying another $10,000 for an extensive policy may impact not just the size of the bid but your profitability as the project manager. As a result, you need to find a balance between your employee wages and your insurance costs.
Expectations For Payment When An Employee Is Injured
Though the investment in a DBA policy before going overseas does add to your bid amount, it can seriously pay off if one or more employees are injured. And, unfortunately, there's a good chance that somebody will be hurt in a war zone. Thankfully, DBA policies will often go into effect no matter how or where the injury occurred on your worker.
For example, if your employee was shot during a skirmish while not at work, your DBA policy will still provide them with benefits while they recover. Typically, payments are about two-thirds of their average weekly earnings while they are injured. For most overseas workers, that amount should be more than enough to keep them going.
What is even more surprising is that DBA coverage will kick in for survivors of workers who have been either killed or kidnapped. The payment amount will be the same two-thirds level decided by the policy. In this way, you can be protected from lawsuits in case a grieving family tries to sue you for putting their family member into a dangerous situation.
And more importantly, these grieving individuals can survive financially without their loved one. In some instances, these policies may offer lifelong coverage for those who hold them. Therefore, anybody who plans on going overseas for a building project needs this insurance type as soon as possible.
