FAR 52.228-3 — Workers' Compensation Insurance (Defense Base Act)
Requires contractors performing federal contracts outside the U.S. to carry workers' compensation insurance under the Defense Base Act for employees working overseas.
When This Clause Applies
Required in contracts for services performed outside the United States, including OCONUS DoD contracts and certain federally funded foreign assistance projects.
What This Means for Contractors
Contractors must purchase DBA insurance covering all employees (including subcontractor employees in many cases) working overseas. Premiums vary significantly by country risk profile and labor category. DBA coverage is statutory and cannot be waived by employee agreement.
Common Pitfalls
- 1Not securing DBA coverage before mobilization
- 2Misclassifying employees to avoid coverage
- 3Inadequate flow-down to subcontractors with offshore personnel
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