DBA Insurance Agent
DBA Insurance

Workers’ Compensation and the Government Contractor

Workers’ Compensation programs may be challenging with Government Contractors with a wide range of SIC (Standard Industry Classifications), and/or multi-state operations. Coupled with the acquisition of additional contract awards where the loss history is not available, securing fair rates and terms may be a challenge for some government contracting companies. Our team works to minimize this discomfort by clarifying the risk through our marketing process and RiskScore® evaluation. And because workers’ compensation does not extend to foreign exposures (foreign voluntary workers compensation and Defense Base Act insurance), we ensure those exposures are understood as well, providing solutions to your team in a seamless fashion.

Multiple workers’ compensation insurance contracts can be difficult to keep up with not to mention administer from a claims management perspective. Our process takes into consideration the assemblage of one comprehensive program, encompassing all the states under the policy(s) in an effort to minimize the administrative burden. Coupled with the workers’ compensation policy, we offer RiskScore® that addresses the gaps and weaknesses in both the risk program and claims management process.

Workers’ Comp provides medical benefits, wage replacement, and/or death benefits. Workers’ Comp insurance routinely attaches a policy called employers liability. Depending on the types of operations being performed, obtaining coverage is straightforward. If your contract comes with hazardous operations however, this insurance can prove challenging. Working with an experienced Government Contracting insurance professional can help streamline this process with the use of effective narratives and in-depth information related to “what is not being performed”.

When it comes to Government Contracting insurance programs, inexperienced underwriters and brokers assume exposures that are not present because of the way the contract is worded or misclassified. For instance, your insurance broker presents a Statement of Work (SOW) to the underwriter. In the description, there is a reference to range operations and live fire exercises. Your work however, has nothing to do with this section of the contract, but the underwriter immediately assumes this. Result, a declined quote.

In order to avoid excessive declinations and higher premiums it is imperative that the correct narrative and description of operations be sent…The first time.