The Defense Base Act of 1941 is an extension of the federal workers’ compensation program that covers longshoremen and harbor workers employed at United States defense bases overseas and is designed to provide medical treatment and compensation to employees of defense contractors injured in the scope and course of employment.
Who requires coverage?
- Any employee working on a military base or reservation outside the U.S.
- Any employee engaged in U.S. government funded public works business outside the U.S.
- Any employee engaged in a public works or military contract with a foreign government which has been deemed necessary to U.S. National Security.
- Those employees that provide services funded by the U.S. government outside the realm of regular military issue or channels.
- Any employees of any sub-contractors of the prime or letting contractor involved in a contract like numbers 1-4 above.
Whether you are a US based contractor or your business maintains offshore subsidiaries, maintaining compliance with the Defense Base Act requires solid centralized administration and accounting capabilities for employees across the globe.
At Axim we have both a depth and breadth of understanding of the operational impacts relating to complying with the Defense Base Act and the traditional services and solutions offered by the broader market to help companies manage their compliance. For example, failure to obtain and carry Defense base Act insurance carries stiff penalties, is a requirement for award on most contracts and is a major liability as it allows any injured employees to bring common law lawsuits against employers without the need to prove negligence.
For more information on complying with the Defense Base Act and how you can lower your overall cost of compliance, please contact us here.