Despite the final withdrawal of U.S. combat troops from Iraq last December and the continued drawdown in Afghanistan, there remain tens of thousands of civilians, including Department of Defense contractors, stationed at overseas military bases. In addition, thousands more work for government-funded projects worldwide, specifically in Afghanistan, Iraq, Jordan, Ethiopia and throughout the region. Given this exposure, it is essential for brokers to help clients that contract with the government to fully understand the insurance requirements under the Defense Base Act.
When the Defense Base Act was first implemented in 1941, its main purpose was to provide insurance coverage to workers stationed at international military bases. However, amendments to the act over the years have made the Defense Base Act to require insurance not only for military personnel, but for any employee engaged in U.S. government-funded business overseas, including public works projects.
