What it does
The base policy's definition of workers compensation law excludes federal acts, and Part Two exclusion 8 removes Defense Base Act work from employers liability. WC 00 01 01 A (Ed. 4-92) adds the Defense Base Act (42 USC Sections 1651–1654) to the definition, treats the location of the scheduled work as if it were an Item 3.A. state, and removes exclusion 8 for that work.
Who needs it
The Defense Base Act extends the Longshore and Harbor Workers' Compensation Act to contractors at overseas military bases, in U.S. territories or foreign countries, and to various public works contracts performed outside the continental United States. Typical buyers are construction, engineering, logistics, security and facilities-support contractors working under U.S. government contracts abroad, including subcontractors and staffing firms that place employees on those contracts.
Key provisions
- Applies only to the work described in the Schedule or on the Information Page. NCCI's notes require the description to include the location of the work.
- Does not add other federal acts. USL&H work in U.S. ports needs WC 00 01 06; nonappropriated-fund work needs WC 00 01 08.
Quoting and selling notes
- Ask for the contract number, contracting agency, country and site, number of U.S., local-national and third-country employees, and their duties, so the Schedule can describe the work and its location.
- Because the act applies Longshore Act benefits rather than a state's benefits, the exposure is rated separately from the insured's domestic state payroll.
- Foreign voluntary compensation and repatriation coverage for employees not subject to the act are separate products.
Related forms
Longshore WC 00 01 06; Nonappropriated Fund Instrumentalities WC 00 01 08; base policy WC 00 00 00.
