3 Types of Contractor Insurance

Businesses engaged in overseas government contract work present a complex risk profile. Knowing the right level and type of insurance needed is crucial. Contracts may reference terms like dba insurance or mei coverage with little or no explanation.

As noted at Moody insurance, avoiding gaps in global or international liability coverage requires attention to policy details. Here’s an overview of three common policies that government contractors working overseas need to be aware of.

Defense Base Act Insurance

Like Workers’ Compensation insurance, this covers government contract employees performing work in foreign countries. It provides workers with benefits in the event of workplace injuries, lost wages due to job-related injuries, partial or full disability and death benefits to survivors.

Medical Evacuation Insurance

Projects in foreign countries are often in remote areas far from medical service providers. This coverage offsets many of the expenses for transport by helicopter or other costly methods required to move an injured worker to medical facilities.

Travel Health Insurance

Domestic health insurance companies seldom provide coverage for expenses incurred abroad. This type of policy addresses that need. Reimbursement for routine medical procedures or checkups may be included. Flexibility in the duration of this coverage is another convenient feature that will accommodate various contract lengths.

The policies above may have overlapping benefits. It is wise to speak with a knowledgeable agent to sort out the features and benefits of these and other kinds of coverage.